The 20-year-old was "negligent, careless and reckless" while driving a BMW on March 13 in New York, according to legal papers filed in the city by snapper Giovanni Arnold on Thursday.
Arnold claims he "sustained severe and permanent personal injuries" in the incident and was financially disadvantaged as a result.
The suit also names Lohan's mother, Dina, but doesn't specify the amount in damages being sought.
No accident report was filed at the time of the alleged incident, although police were on the scene at the time.
She replied jokingly, "No, but I should. The guy completely faked it."
COPYRIGHT 2007 WORLD ENTERTAINMENT NEWS NETWORK LTD. All Global Rights Reserved.