Kylie is suing Pete Waterman for nearly half a million pounds for royalties she claims she's owed.
The Aussie popstar hired a specialist music royalty service two years ago and they alleged she was underpaid by £440,000 by Waterman's company PWL.
His company paid up £264,000 but Kylie has now launched legal action in her native Melbourne for the remainder of the money owed.
The disagreement centres on her Greatest Hits album, released in 1992 and then re-released 10 years later.
Kylie and her former mentor are already off each other's Christmas card lists, after Waterman accused her of "selling out" when she abandoned her girl-next-door image of her early years for her current sexier look.
The Pop Idol judge also claimed that she nearly made Stock, Aitken and Waterman bankrupt because it had to pay her so much - they were behind her sudden rise to fame in 1988 with hits such as I Should Be So Lucky.
Pete split from his former partners in the early 90s and is reported to be worth £45m.
His current company, PWL, said they would be defend the action brought against them by Ms Minogue.
