TV celebrity Uri Geller is suing the former owners of Elvis Presley's first home, claiming breach of contract.
Elvis asked Geller to perform his spoon-bending trick when they met
Geller thought he had won the Tennessee house after he bid $905,100 (£477,670) for the house on auction website eBay.
But US vendors Cindy Hazen and Mike Freeman sold the property to Nashville record producer Mike Curb.
"We had the highest bid, but the seller has turned round and given the house to someone who offered them more money," Geller told the BBC News website.
"There was a strongly-worded statement on the [eBay] website that said the highest bid would win the house," said Geller.
The legal action, filed at the Federal Court in Memphis, seeks a jury trial to annul the sale to Mr Curb, reported to be worth $1m (£540,000).
But Ms Hazen told Memphis newspaper The Commercial Appeal that the contract with Geller was never finalised.
"At the end of two weeks, we still did not have an agreement on possession or a closing date," she said.
"If we had signed the contract, they could have taken possession immediately," said Mr Freeman. "We couldn't do that."
However, Geller maintains their argument will not stand up in court.
The house is complete with musical-note wallpaper
"This will all unfold in court," said Geller.
"What the sellers are saying now is words. What counts is what they will say in court under oath."
Geller and his business partners had been planning to turn the house into a museum for the public.
Rock legend Presley bought the house with royalties from early hit Heartbreak Hotel, and lived in the house for 13 months - mostly in 1956 - with his parents and grandmother.
As his career took off, Elvis moved to Graceland, the residence with which he remains most closely associated.