Designer Karen Mathews has filed papers at the Los Angeles Small Claims Court against the `Maggie May` rocker - who married Penny Lancaster in Italy three years ago - alleging he ordered custom made clothes for several events in 2007 but never paid for them.
A spokesperson for Karen said: "The clothes were never paid for in full and [Rod] kept the rest of the clothes without ever returning what hadn`t been paid for."
The spokesperson added Karen had not had a problem like this in 30 years which "speaks for itself".
However, Rod claims he didn`t pay for the wedding suit because the quality was "unsatisfactory".
His representative said: "It wasn`t produced on time and was ill-fitting and totally unusable. He had to buy a proper suit at the last minute."
A court date has been set for November.
Over the course of his career Rod, 65, has been accused of being frugal with his millions.
His son Sean has labelled him "cheap", while Ronnie Wood - who played with Rod with the band the Faces - has previously described him as "tighter than two coats of paint".
But Rod - who is expecting his second child with Penny - has always refuted the suggestion he is "cheap" insisting he is merely "careful with money".