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The loss sees Southern drop out of the top four, while Taieri moved into second place with a thrilling 46-40 win against Kaikorai at Bishopscourt.
Kaikorai picked up two bonus points to move into fourth place.
University dispatched Zingari-Richmond 59-24 at Montecillo and extended its lead at the top of the standings.
In the other game, Green Island edged Alhambra-Union 20-17 at the North Ground.
Harbour had a bye and slipped back to third place.