Members of the 'Iolani Palace staff were drinking alcohol in a "pau hana" celebration shortly before a Hawaiian sovereignty group occupied the palace grounds last year, according to court testimony yesterday.

The information came to light as the trial of two men began on charges they assaulted a staff member during the brief occupation on Aug. 15, 2008.

Walter Rodby, defense lawyer for one of the defendants, Donald Love-Boltz, told jurors that palace staffers who will be witnesses in the case were "drunk" and "intoxicated" when the occupation took place.

But Kippen de Alba Chu, executive director of the palace, denied that allegation, saying that he and other staffers had just begun drinking cups of champagne when they were interrupted by reports of the takeover.

Asked by Deputy Attorney General Mark Miyahira how much champagne he consumed, de Alba Chu said, "maybe a quarter of a cup."

Miyahira told the Circuit Court jury in his opening statement that the takeover occurred on Admissions Day, a state holiday, and that staffers had been concerned that the palace might be the site of a demonstration by sovereignty advocates.

At the close of business there had been no problems, so the champagne bottle was opened as a "pau hana" celebration, Miyahira said.

Charged in the case are Love-Boltz, 74, of Las Vegas, and Robert Roggasch, 70, of Maui.

They allegedly assaulted palace employee Betty Jean Noelani Ah Yuen by striking her with a swinging metal gate as she stood in a walkway between the palace and the state library.

The leader of the sovereignty group, James Akahi, was earlier tried on burglary charges but was found guilty of misdemeanor trespassing.