Adam Parker, then 41, pleaded not guilty in Warrnambool County Court to arson, conduct endangering life, reckless conduct endangering serious injury and assault.

He pleaded guilty to a single charge of assault.

In opening addresses, crown prosecutor Angela Moran said Mr Parker attended the home of Warrnambool's Angela Baker following a wedding on December 31, 2020.

The jury heard Sam Gordon, then 30, and Tina White, 41, also attended the property where the group continued celebrating.

Ms Moran said an argument broke out and Mr Parker assaulted Mr Gordon at the property.

The court was told the man had pleaded guilty to that assault.

The prosecutor said Mr Gordon and Ms Baker left the property but returned some hours later.

She alleged Mr Parker assaulted the man and woman upon their return.

The jury heard the accused man was later heard saying he would "burn the f**king house down".

Smoke and flames were soon seen coming from inside the property.

Ms Moran said it was the prosecution case that Mr Parker lit the fire.

She said forensic examination revealed there were two ignition points - one in the hallway and another in the bedroom.

She said the jury would hear there was no accelerant used and the cause was most likely a match or cigarette butt.

Jurors heard the damage bill to the government-owned property was about $200,000.

Barrister Rohan Barton acknowledged the incident was "inexcusable and plain wrong" but said it wasn't Mr Parker who lit the fire.

He said no one observed his client leave the premises and there was no CCTV footage of the incident.

The trial before Judge Anne Hassan continues.

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