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A no-win, no-fee legal firm is demanding a court order payment of their costs despite the case being settled out of court.
Antony Hodari Solicitors, based in Manchester, were instructed by tenant Shaun Capon to resolve a complaint about damp and mould at a flat he was renting in Brighton.
However, the landlords Alfred Haagman, owner of Neville Investments Ltd, and Alessandro Nettuno, fixed the problem without going to court.
Ms Meezabin Motegheria represented Mr Capon, who did not attend the hearing.
Molegheria told the court that costs for her firm were just short of £10,000 already and would rise to the low five figures once a barrister was instructed.
She asked for the case to go before a judge for a full hearing to decide who was responsible for the damp, and whoever that was would be liable for the costs.
The tenant, who reportedly does not want the case to go ahead, claims the problem was caused by the landlords, while the landlords argued the tenant caused the damp by stuffing a ventilator with clothes.
Mr Haagman told Brighton Magistrates Court: "This is a no-win, no-fee case with the costs ridiculously overcharged.
"We have a video from when my contractor went round, which shows clothes blocking up the vents."
Magistrates agreed with Molegheria's argument and listed the case for trial on January 19.
Bankrupt landlord and property manager Bhupinder Chohan was given a £360 fine for refusing to pay a gas bill, which left two university accommodation blocks without heating or hot water.
The fine came at the end of a court case that had lasted years, cost Bradford Council thousands of pounds to prosecute and involved 14 separate court listings.
At his sentencing, Bradford Magistrates' Court heard Chohan managed two blocks with 167 rooms at Bradford University and continued charging rent even though the students had no hot water or heating.
Not all the rooms were rented, but at one time, 76 students were living in them.
Chohan was previously found guilty of failing to supply gas for heating to the students.
The court explained legal guidance stated Chohan's penalty should be three times his weekly salary, but as a bankrupt, Chohan lives with his mother and relies on £120 a week Universal Credit and hand-outs from his family to pay his bills.
He was fined £360.
Tenant James de Jager, 47, has been charged with perverting the course of justice and stealing furniture worth £1,900 from a home in Oxford.
The perverting the course of justice charge relates to de Jager allegedly altering documents relating to the case.
De Jager was remanded in custody at Oxford Crown Court to appear again on October 9 for a case management hearing and for trial on February 2.
No plea was entered.