Peters' ex-wife reportedly dropped the star's two dogs off at the California K-9 Academy back in June, 2010, while he was in the midst of moving into a new house.
Peters' assistant picked up his Akita, named Bear, 200 days later, but the movie mogul's Doberman Pinscher, Beau, was left behind and later spent more than one-year at the facility.
Kennel officials eventually requested permission to sell the pooch if the producer didn't want to reclaim him and they quickly found Beau a new home.
However, K-9 Academy bosses have since taken legal action against the Rain Man producer, claiming he neglected to settle up and cover the cost of his pets' vet care, boarding and training.
Peters is vowing to fight the allegations and his lawyer tells TMZ.com, "Mr. Peters has an established history of caring for animals and specifically took legal action to protect the animals involved in this matter."