Benji "the Binman" Pell is used to being paid thousands of pounds for the contents of a rubbish bin but this time, if his claims are to be believed, he was on the receiving end of a large pile of garbage.

Mr Pell, who has made a career out of rifling through the rubbish bins of celebrities and selling their private papers to national newspapers, yesterday launched a high court action against a businessman he claims duped him into handing over thousands of pounds to make a Hollywood blockbuster of his life story.

He is seeking repayment of £77,500 and unspecified damages from a newspaper owner, John Mappin, who he claims promised to introduce him to "one of the biggest names in Hollywood". Instead of Steven Spielberg or George Lucas, however, Mr Pell found himself dealing with Iain Jones - a hairdresser who was putting himself through film school.

Mr Pell's counsel, Marion Smith, told Mr Justice Gray he had been "duped" into paying out the money to Mr Mappin in the belief that Mr Jones would make a blockbuster that would "have a franchise bigger than Seinfeld".

After allegedly being told that Mr Jones required money for his time and expenses, Mr Pell, of Hendon, north-west London, made an initial payment of £13,750, followed by three further payments.

"Put bluntly, however naive it may seem, he believed there were going to be Hollywood writers on the case - for it to be picked up by a Hollywood studio, cast with big-name actors and a Hollywood film resulting," Ms Smith said.

In fact, she added, and unknown to Mr Pell until much later, Mr Jones was not a Hollywood film-maker but a hairdresser. He had never directed or produced a film, and the closest he appeared to have come to Hollywood was being credited with hair design on three Quentin Tarantino films - Reservoir Dogs, Pulp Fiction and White Man's Burden.

Ms Smith said Mr Jones had not required payment of any sum, let alone the £77,500 claimed on his behalf, and no such sum had been received by him. "It's now admitted that Mr Mappin extolled the virtues of Mr Jones. It is clear that the simple word 'hairdresser' was never used," she said.

Mr Mappin, who contests the claim, is expected to argue that he thought it was true that Mr Jones required payment.

The case, due to last five days, continues.