A bystander claims LaBeouf lost his cool after he had to wait to get access to his garage while the neighbor, who was blocking his path, chatted to his girlfriend.
The onlooker says, "Shia began honking his horn and yelling at the guy, but the neighbor told him to wait a minute, and carried on talking to his girlfriend.
"Then Shia rammed his car into the back of the other guy's car. Words were exchanged and Shia jumped out and threatened the neighbor."
LaBeouf allegedly appeared at his neighbor's front door hours later waving a kitchen knife. The two fought, the cops were called and the actor was led off in handcuffs.
His attorney Paul Takakjian tells American tabloid National Enquirer that he expects his client to be exonerated.
He says, "Shia is completely confident of his innocence."
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