Ross Miller is accused of murdering Brandon Lee, 24, who suffered more than 100 injuries, in the early hours of May 12.
Mr Lee died as a result of stab wounds to his neck and chest and suffered "60 separate actions from a sharp-edged weapon or weapons including chopping, stabbing and potentially slashing", jurors have heard.
Prosecutors claim Ross Miller carried out the violence at his home, also alleging his brother Garry Miller assisted or encouraged the attack, with "murderous intent".
Ross Miller, 23, of Victoria Road, South Shields, and Garry, 26, of Beach Road, South Shields, both deny murder and are being tried by a jury at Newcastle Crown Court.
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Neighbour David Mtikaibya, who lived in a flat below Ross Miller, has told jurors he heard noises at the time of the alleged murder.
He said: "I heard arguing, swearing and banging coming from the top floor".
Mr Mtikaibya said he had a woman visitor at his home and she was frightened of the noise so he called her a taxi and walked her out of the block of flats.He said it was as he returned to his home he saw Ross Miller and added: "I thought I saw blood then I thought nah."
Mr Mtikaibya said he went inside his flat but then heard someone near his front door saying to call the ambulance or police.
He said he looked through his spy hole and saw Ross Miller at his door and added: "I seen him covered in blood. I thought he was injured."
Mr Mtikaibya said there was blood "dripped all over" in the passageway.
He added: "He was covered in blood and I thought he had a knife but I wasn't sure. He was holding something."
Mr Mtikaibya said he called 999 as a result of what he saw.
Jurors were shown CCTV footage of Garry Miller walking home, wearing only one trainer on his feet, after the alleged killing of Mr Lee.
The trial continues.