Napier RSA president John Purcell said the incident had added to what he called ongoing stress as the association appeared to have become a prime target for the District Licensing Committee.
He said management had tried to approach the DLC with a view to sitting down with them to discuss any issues, and to put together a constructive prevention programme so that breaches would not be able to happen.
He said his staff were all very aware of the requirements for serving non-members and the protocols that needed to be followed and that the circumstances of the latest incident had not warranted such a severe response.
"We just want some transparency - we just want a fair go but they don't want to talk to us."
The first incident, in 2010, involved the association hosting a 21st birthday party and there were issues with those attending as unaccompanied guests.
While the management accepted there had been a breach, it was later pointed out that one of those among the celebratory group to arrive was a member of the DLC, but who said nothing all night despite seeing a problem.
One of the current members of the executive, Ron Rowe, said it would be refreshing for people in such licensing to "come out of the woodwork and acknowledge all the times we get it right".
The RSA had tabled two options outside of prosecution which would have benefited the whole community, through monetary grants and assistance, but they were declined - Mr Williams said "clearly the inspector wanted to go to court".
Mr Williams said the Napier RSA had also been punished through being denied a reciprocal rights agreement with Australian RSLs.
They were unable to allow Australian veterans in as guests.
Napier was the only RSA in the country to be turned down for reciprocal rights.
"We are Anzacs," Mr Williams said.
"But we have had to turn them away - when the cruise ships came in many RSL members would come here but we could not serve them ... they were fine to go to RSAs everywhere else.
Other clubs in Hawke's Bay were allowed to go ahead.
