Undercover officer 'saw ecstasy on sale in club'.
Father and son David and David Mallin, and their associate Graham Brown, are alleged to have allowed Class A drugs to be openly dealt at the nightclub.
The trio are all standing trial at Newcastle Crown Court on two offences in connection with the New Monkey Rave club, Pallion Road in Sunderland. They deny knowingly permitting or suffering the sale of drugs at the premises.
But yesterday an undercover police officer, who gave evidence behind a screen and went by the name of 'Sam', told how drug dealing had been clearly visible in the late night dance venue.
She told how, accompanied by another test purchase operative named Amy, she was approached within 15 minutes of going into the venue in the early hours of January 22, 2006, and offered ecstasy pills. She told the jury: "The young girl took me to a male and spoke to him for a matter of minutes. I then handed the money to the girl, two pounds 5 notes I handed her.
"She handed that to the male, the man then produced out of his pocket a handful of drugs."
She added: "I could see people doing the same thing, people pulling ecstasy pills out of their pockets loose, or in bags. It was very visible. I've never seen anything like it before." The jury had been told the police launched a seven-month operation to watch the club in the wake of the death of a teenager outside.
Garry Henderson, 18, of Cambridge Street in Cruddas Park, Newcastle, collapsed after taking ecstasy and later died.
As a result of the operation, during which undercover officers were repeatedly offered Class A drugs, more than 160 officers carried out a raid on the premises on March 26 last year. They seized more than 100 pills and arrested 18 people - 10 of which have been sentenced for drug offences.
Mallin junior, 23, of Boston Street, Town End, Sunderland, is expected to deny being involved in the running of the New Monkey. Mallin senior, 45, of Dykeland Roads, and Brown, 45, of Atkinson Road, both Fulwell, Sunderland, will deny any knowledge of drug dealing.
The trial continues.