A MAN who called his neighbour a "Romanian gipsy" was given a conditional discharge by magistrates yesterday.

William Underwood, 41, of Elwick View, Trimdon Station, had been friends with Florina and John Troup before the occurrence of the incident, which arose over a caravan, the Newton Aycliffe court heard.

Claire Whelpdale, for Underwood, said he and his wife, Linda, had moved to the area two and a half years ago and became friends with the Troups.

Magistrates heard the dispute arose shortly after Mrs Troup asked Underwood to move his caravan along the street so she could park her new car.

Ms Whelpdale said Underwood moved the caravan, but he later received a letter from Darlington Borough Council requesting that he parked the caravan elsewhere.

The court was told that on June 24 Underwood returned from a neighbour's house, having been drinking, and overheard Mrs Troup shouting at his wife about the caravan.

Jacqueline Wilson, prosecuting, said Underwood approached Mrs Troup and called her a "Romanian gipsy" five or six times.

Ms Whelpdale said Underwood accepted he said the words once in anger.

"He denies he is a racist because he was very close friends with the family," she said.

"This was just an isolated incident where he said some inappropriate things in anger."

Magistrates gave Underwood a 12-month conditional discharge and ordered him to pay £34 costs.