LA Confidential owner David Menefield is suing the hit making producer and his production company Tuff Jew Productions for more than $550,000.
Storch had agreed to be solely responsible for paying back the loan, as well as deliver four musical tracks to Menefield, who is the former manager of rapper Knocturnal.
"I wish it didn't have to come to this," David Menefield told AllHipHop.com.
According to the lawsuit, at the time of the loan, the producer was facing foreclosure on his home.
The complaint also included a copy of a promissory note and a copy of a wire transfer receipt that Menefield's claims confirms his transfer of the money to the production company.
Attempts were made by Menefield to get the money when he contacted Storch on Nov. 15, 2006 and demanded payment.
The businessman claims he talked to Storch months later on March 14, 2007, offering another opportunity to pay as well as forego any collection costs that might be imposed.
To date, no attempt has been made to repay the loan or provide the musical tracks, court documents stated.
Damages from Storch's refusal total $550,000 Menefield claims.
"We intend to prevail," attorney Bret Lewis added.