The day before Valmai 'Jane' Birch's body was found decomposing in a wheelie bin in her Woonona unit, her boyfriend David Bagster commented to a neighbour on the smell coming from the unit.
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Margaret Ryan, known as Blondie, told Wollongong District Court on Monday that on March 21, 2011 she was with Bagster.
Bagster, 55, is facing trial for the manslaughter of Ms Birch, to which he has pleaded not guilty.
After leaving Ms Ryan's unit and returning shortly after, Bagster commented to Ms Ryan on the stench emanating from Ms Birch's unit.
"'God it smells over there, Blondie,'" Ms Ryan recalled Bagster as saying.
The next day, police discovered Ms Ryan's body partially hogtied and semi submerged in a wheelie bin in her bathroom.
Ms Ryan also had in her possession Ms Birch's Centrelink card, which she had found a week prior while walking along Park Road with Bagster.
Ms Ryan said she intended to return the card to Ms Birch when she next saw her, but she hadn't seen Ms Birch, despite being neighbours, for at least a week after finding the card.
When police visited Ms Ryan's unit after the discovery of Ms Birch's body in March 2011, they found the card on-top of Ms Ryan's oven.
The court also heard that Ms Ryan told police she had never seen Bagster washing out rubbish bins, or putting the bins out for collection.
Ms Ryan also said Bagster did not go to Ms Birch's house and let himself in, nor did Ms Ryan have any knowledge of Ms Birch working as a sex worker out of her Woonona unit.
Under cross-examination from defence barrister Scott Fraser, Ms Ryan said since having an operation in 1997 she had had difficulties with her memory.
"You sometimes have difficulty remembering when things happened? Mr Fraser said.
"Yes," Ms Ryan replied.
After questions from Mr Fraser, Ms Ryan also said she did not have a direct view of Ms Birch's unit as her unit faced onto Cotterill Avenue, while Ms Birch's unit faced on to Woods Avenue.
The court also heard from Inspector Sasha Debnam who conducted the forensic examination of Ms Birch's home after her body was found.
Inspector Debnam said all the doors and windows to the unit were locked, with only minor damage to one door at the rear of the house.
Inside the unit, the fans, including an extractor fan above the stove were still running when police arrived, and the front porch light was left on.
Clinical dermatologist Kurt Gebauer also gave evidence yesterday based on medical records when Ms Birch was admitted to hospital in February 2011.
Ms Birch presented to hospital with cellulitis spreading up her right leg and her medical history indicated she had been kicked or hit in the leg.
When asked if kicking or hitting could lead to cellulitis, Professor Gebauer says "It certainly could" as any damage to the skin allows the bacteria which cause cellulitis to enter.
Medical notes also indicated superficial tears on Ms Birch's big toe, which Professor Gebauer says could also lead to cellulitis but the notes do not confirm if that was the case.
Professor Gebauer said the medical notes showed symptoms consistent with Ms Birch suffering from cellulitis in her lower right leg, and it could have begun in her toe, where there was some superficial damage and tearing, but the notes were not specific enough to confirm that.
Ms Birch had previously presented to hospital with an abscess in her left groin and cellulitis in the right groin but these were separate to the condition Ms Birch was suffering from in 2011, Professor Gebauer said.
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