The war has broken out between Graze Deli owners Nadiene and Evert Zieleman and up to 12 other businesses and has even spread to Morpeth Public School.

And the drama spilled from the streets to the courtroom this week when Ms Zieleman lost her application before Magistrate Michael Morahan in Maitland Local Court to have the matters mediated.

The situation was so serious that several people told the Mercury they were thinking of leaving town.

At the same time Ms Zieleman says “they are trying to run us out of town – and we are not going”.

Morpeth Woodfired Pizza owner Mark George said Ms Zieleman had called him names in front of his customers.

“Ms Zieleman’s favourite line is that we are all jealous of her business,” he said.

Restaurateur Dave Brinkley said: “Morpeth cannot keep growing until this situation is resolved.”

Trevor Richards of Morpeth Gallery said his concern was that the dispute was starting to affect the wider community.

“It has nothing to do with anyone being envious of their business,” he said.

Ms Zieleman believes she has done nothing wrong and it is herself and her family who are “being terrorised”.

“We work hard to make our business the success that it is – and these people are jealous of us.”

She strongly denied using bad language or threatening behaviour to business people in the town.

“We had the police sent to our place up to 30 times in a year – but we have not broken the law,” Ms Zieleman said.

“This is a personal dispute now and we are being treated like criminals.”

She said “jealous business people” were trying to ruin the deli shop she runs with her husband.

“We should not have to put up with what is happening to us,” Ms Zieleman said.

“We are open here from 7am to 8pm and we have made this place what it is.

“We were State finalists for gourmet takeaways in August.

Ms Zieleman said the pressure on them by members of Morpeth’s business community was highly stressful for herself, her husband and their three children.

“Rumours have been spread that we are barred from every pub in town.

“And I have heard other rumours put about that the food we sell is off,” she said.

“We have also had our dogs poisoned.

“All of our tables are full every day and people are envious of our success.We are being victimised – there is no doubt about it.

Mr Zieleman told the Mercury: “We have been here for three years and we won’t be chased out of town.

“We have big plans for this place.

“But all the money we make is going to solicitors.”