Later that night he ended up at a party where Mr Nicholson was also drinking, and while walking home, the two bumped into each other.
Mr Dixon said the victim called Te Amo and his friend "little bitches".
"Darryl Nicholson could be a bit cheeky," he said.
Te Amo admitted to police in subsequent interviews that he punched the man, knocking him over.
Unknown to him, he broke Mr Nicholson's jaw, days since the 35-year-old had been discharged from hospital after having plates and pins inserted in his face for an identical break following another fight.
The man - known as 'Daz' - fell over and was set upon by Te Amo, who was restrained by his friend.
Moments later the men dusted themselves off and went their separate ways.
"That, you might think, would be that," Mr Dixon said.
"But that punch caused bleeding inside Mr Nicholson's head and that bleeding continued over the course of about a day and a half, causing Mr Nicholson to die."
The prosecutor said a pathologist would give evidence during the trial that Te Amo's punch amounted to "blunt-force trauma" causing substantial bleeding inside the victim's head.
But defence lawyer Belinda Sellars said the case was more complicated than the prosecution suggested.
"Can we really be sure Israel's punch led to Mr Nicholson's death beyond reasonable doubt? It's not so straightforward as the Crown would have you believe," she said.
"We can't be sure the encounter with Mr Te Amo was the last one. And even if you can be sure it's the last one, you can't be sure it was the operative cause of death."
The trial, before Justice Timothy Brewer and a jury of seven women and five men, is expected to last two weeks.
