If granted the payout would wipe out much of Katherine's income from Michael Jackson's estate, meant to support her while she cares for his children.
The Segye Times has filed papers with the Michael Jackson estate, informing the court it has a judgement dating back to 1994 against Mrs Jackson for $4 million
The newspaper claims it advanced Mrs Jackson, husband Joe and son Jermaine $5.5 million for a series of Jackson family concerts which never took place.
According to U.S. website TMZ the papers state that with interest the judgement now exceeds $13 million. The newspaper is asking for an order from the judge forcing the estate to pay it any money it might be planning to give to Mrs Jackson.
It comes as Mrs Jackson, 80, gave her first TV interview since her son's death - revealing she did not meet the singer's ex-wife until after he died.
She said her first meeting with Debbie Rowe - the mother of two of Michael's children - took place when they were mourning his death
Mrs Jackson rubbished reports that the former nurse was fighting for custody of Prince Michael and Paris, and described how they 'clicked right away'.
'We cried together, we talked. We had a nice time together because when we met it was just Michael we thought about mostly - and the children,' she said.
'All the rumours about Debbie Rowe wanting to take the children away are completely false.
'Debbie's happy with the arrangement the way Michael left it and she sees nothing wrong with me raising the children I respect her and love her for that.
'Debbie's the children's biological mother and I feel that she should be in their lives and the children should know her.'
Mrs Jackson gave the rare insight into her grandchildren's lives during her interview on U.S. TV - to mark the first anniversary of Michael's death.
She even confessed she had disapproved of her son making his children wear masks in public, and wants them to live more normal lives.
'I never did like the fact that he put scarves or veils over their faces, so that's why I didn't do it,' she said.
'As long as we have them protected with security guards, I think that's fine.
I know sooner or later after they got older, which they are now, they wouldn't want that, so I stopped it.'
Although Prince, Paris and Blanket are currently being home-schooled, Mrs Jackson said she was contemplating sending them to a private school in the future.
'Blanket's not ready yet. Paris has said she wasn't ready either, but when they went to check out some schools with their cousins - Tito's boys - she liked it, so she said she wants to go,' she said. 'We'll see what happens in September.'
While Prince is interested in the TV industry, Mrs Jackson revealed how Paris wants to be an actress and Blanket is already showing a flair for music.
'Prince loves the camera. They were doing this with Michael before Michael passed. He wanted to be behind scenes and do movies and things like that, so Prince was working with him,' she said.
'Paris wants to be an actress - which she is already. And she wants to play the piano. She still plays it, but she plays by ear.
'Blanket can carry a tune very well and he has rhythm and he can dance.'
And Mrs Jackson revealed how Michael's children spent years not even knowing their father was a world famous singer.
'At one time they didn't even know, because he never did let them know what he was doing, never did show them any videos of himself,' she said.