Mr Marshall then fell out of the window, landing on the footpath below.
Yesterday prosecutor Amanda Forrester said a "fit of rage" and the "barest exchange of words" prompted Schmidt to push Mr Marshall out of the window, the West Australian newspaper reported.
He was so angry that immediately after he pushed Mr Marshall out the window he punched another person to the ground.
When he walked out of the hotel he only glanced towards where Mr Marshall lay on the ground.
Defence lawyer Tom Percy said Schmidt accepted he pushed Mr Marshall, but claims he did not intend any harm.
"He certainly was not in a blind rage as my friend says,
"Mr Marshall made a provocative remark and Mr Schmidt pushed Mr Marshall out of the way with his left hand," he said.
The intent was to push Mr Marshall out of the way, not to kill him or cause life threatening injuries, he said.
The trial is set down for two weeks.
Mr Marshall was the cousin of murdered Feilding farmer Scott Guy.
His brother-in-law, Ewen Macdonald, is on trial in the High Court at Wellington for his murder.
Mr Marshall's father, Alan Marshall, last year told the Herald of his shock over his son's death, especially so soon after Mr Guy's death.
"It's a little hard to believe ... they were close and all grew up together, the cousins, and had a good childhood together," Mr Marshall said.