Chapa, who starred alongside Jean-Claude Van Damme in 1994 action film Street Fighter, claims he met Roxanna Foell in Germany in 2006 while attending the Berlin Film Festival.
They embarked on a romantic relationship and she moved into Chapa's California apartment months later.
However, it was only when Foell fell pregnant with his child that he discovered she was already married, and she subsequently left Chapa and reunited with her husband back in Germany, giving birth to the actor's baby in 2007.
The 48 year old filed a paternity suit in a bid to gain visitation, but he claims Foell turned his life into a living hell by telling local police that he had raped her, prompting cops to arrest Chapa upon his arrival in the country to see his son.
According to papers obtained by TMZ.com, he is now taking Foell to court and is demanding damages for ruining his reputation.
Director Roman Polanski is to have his life documented in a new Hollywood biopic.
The movie, simply titled Polanski, will be written, produced and directed by Damian Chapa and will document the filmmaker's life from his childhood in Poland during the Holocaust to modern day.
It will also focus on the 1969 murder of his wife Sharon Tate and the unlawful-sex charges the star faced in 1977, after he was accused of having sex with a 13-year-old girl.
Polanski jumped bail following the incident and fled to Europe, where he has remained ever since. He is now a French citizen.
And director Chapa is confident Polanski's life will make for interesting viewing.
He says, "It's a very intense story we're going to carefully base on court documents and public-domain records.
"I've looked at the court documents of his case, and they're so brash and in-your-face. What happened there has overshadowed his life yet also been swept under the carpet," he added.
"I've always been fascinated by his story and couldn't understand why no one has done a movie about him."
The roles will be cast in the coming weeks and the film will begin shooting in January.
It is understood Polanski himself will have no involvement in the project.
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