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In legal papers filed on Monday (18Oct10), Davis claims he flew to the rapper's native Atlanta, Georgia and handed over an $80,000 fee to T.I.'s representatives to stage his first gig since his prison release.
The event was due to be held at the Birmingham Jefferson Coliseum in May (10), but problems arose when the hip-hop star went on air and told a local radio DJ he would be hosting the party, but had no plans to perform.
Davis alleges T.I.'s announcement prompted fans to question the validity of the Alabama show, and the event was subsequently scrapped.
He claims he suffered severe stress as a result of the cancelled gig, including chest pains, nausea, emotional distress and hospitalisation, because he had invested his life savings of over $340,000 into the concert.
Davis is suing for compensation.
T.I. eventually made his return to the stage in August (10) at a star-studded comeback gig in New York.
He is due to report to authorities by 1 November (10) to begin a new 11-month jail term after violating his probation following a drug bust.