The 39-year-old is fighting a damages claim brought by John Reid, who is also the former manager of Elton John.

Mr Flatley danced his last dance as the Lord in July

Mr Reid, 47, claims he was sacked after helping the former Riverdance ace put together the successful Lord of the Dance stage show.

At the opening of the case on Thursday, Mr Reid's QC Robert Englehart said Mr Flatley - worth an estimated £60m - was "a well-known dancer of considerable repute and undoubtedly a considerable talent in the dance field".

Counsel told the judge Mr Reid was "summarily dismissed" on 16 January 1997.

"The management contract had only been entered into some seven months previously and was not due under its terms to expire until 15 October, 1998," he said.

Mr Englehart said Mr Flatley's case was that he was "entitled to summarily dismiss his manager" for a number of reasons.

'Economic duress'

He told the judge Mr Flatley alleged that when he first met Mr Reid in September 1995, he was induced by what the manager said then to enter into a management agreement with him in June 1996.

Counsel told the packed court that the star also claimed that the management contract was "procured by undue influence" on the part of John Reid Enterprises Ltd.

It was further alleged, he said, that the contract represented an "unconscionable bargain" and was the result of "economic duress".

As well as Mr Reid's claim against the star, the judge will also hear a counterclaim brought by Mr Flatley against his former manager for alleged deceit, and also against his former solicitors for alleged professional negligence.

Mr Englehart said the management contract was "fairly and fully negotiated" by solicitors on both sides and that there was "simply no room" for saying it was the result of undue influence.

Younger magazines

Mr Englehart said it was during the 1996 Australian tour of Lord of the Dance that "you see the first document which can legitimately be categorised as a complaint about John Reid Enterprises".

Mr Flatley sent a fax to Mr Reid from Australia putting forward a number of points requiring attention.

Counsel said the dance star wanted to be on the cover of various magazines, wanted to be targeted in younger magazines and "complained that some football players got £3.5m and he wanted that", and also that he wanted to be nominated for the Olivier awards.

No congratulations

But the first "hint of trouble" as far as Mr Reid was concerned came with a fax from Mr Flatley in December 1996.

Mr Flatley said he had returned from his holiday in the Maldives to discover his Lord of the Dance video had gone to No 1 and was "horribly disappointed" that no one from Mr Reid's office had called to congratulate him.

One month later Mr Reid received a solicitor's letter summarily dismissing him as Mr Flatley's manager.

Mr Reid denies that he was involved in any trickery or undue influence.

The case is set to last about five weeks, during which the dancer and his ex-manager will be among a "considerable" number of witnesses to give evidence.