An actor who once appeared alongside Sylvester Stallone is battling a production company over allegations he misused more than $1.5 million.
Legal documents released by Western Australia's Supreme Court have revealed the battle between British-born actor James Smith, also known as James With, and production company China Brothers Productions.
The dispute revolves around a proposed film about a young man and his powerful car which was to be filmed in Western Australia.
Smith was to produce, direct and star in the film, titled All The Wild Horses.
The actor's previous screen roles include the part of "Missionary #5" in the 2008 movie Rambo, which starred Stallone.
Justice Kenneth Martin said the dispute involved "serious allegations ventilated by each side", with the producers alleging Mr Smith was "squandering or using for improper or personal purposes the funds advanced and raised by the plaintiffs", totalling $1.5 million.
Orders were granted in 2009 to freeze the funds, and the film was not made.
"The 2009 freezing orders I granted were issued in circumstances where significant amounts of the advanced funds had been consumed by the defendants. Issues arise as to the legitimacy of the consumption of these funds," Justice Martin said.
More than three years later, the dispute is still in court, with Justice Martin saying a two-week trial might be needed to settle the row.
The judge ruled a preliminary hearing should be held before any potential trial.
It will be listed for hearing later this year.