Former Leicester midfielder Dennis Wise has launched a High Court action against the club to reclaim more than stg£2.3million in lost earnings following the termination of his contract in August.
Wise was sacked by the Foxes after an altercation with team-mate Callum Davidson on a pre-season tour of Finland.
Wise challenged his dismissal but a four-man tribunal panel ruled last month that Leicester were within their rights to sack the former England star.
This latest development comes at the worst possible time for Leicester, with the club understood to be around stg£30million in debt.
Current Foxes players yesterday agreed to defer 20% of their weekly earnings to try and ease the club's plight following their relegation from the Premiership in May.
But Wise's move adds to their problems considerably.
A statement released through his solicitors said: "We confirm that civil proceedings have today been commenced in the High Court on behalf of Dennis Wise, against Leicester City Football Club plc, for wrongful termination of his employment on 14 August 2002.
"The claim is for a sum in excess of #2.36million. Separate employment tribunal proceedings are to be instituted shortly in regard to unfair dismissal in addition to the civil proceedings."