A couple from County Durham are being sued by a five-star hotel in Crete after they allegedly made a fake claim against the resort saying its food and drink made them ill.
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The Mail on Sunday reports that Sean and Caroline Bondarenko allegedly fabricated a £10,000 compensation claim against the Caldera Palace Hotel on the Greek island of Crete.
Court documents show the hotel submitted a £170,000 counter-claim stating that the pair "consumed large quantities of alcohol" during the time they said they were sick.
Atlantica Hotel Management Ltd says the couple did not report their illness during their week-long holiday in October 2013 and made a bid for compensation three years after their stay.
The company says it has Facebook posts which show that they enjoyed their time at the hotel. The couple are now trying to drop their claim.
Mr Bondarenko told the Mail on Sunday: "I was horrified when I saw the court papers which listed all these negative things we were supposed to have said about the hotel."
Earlier this month, it was reported that British holidaymakers could lose out on all-inclusive getaways to Spain - due to the high number of "fraudulent" sickness claims.
Law firm Rogers & Co, which acts on behalf of the insurance industry, said that Spanish hotels could increase the price of these traditionally low-cost holidays, or scrap them altogether.
Many British tour operators say they have already noticed a number of hotels in the Canary Islands offering half board instead of all-inclusive packages.
Spanish hotels say they feel they are being "taken hostage" by British holidaymakers who make fraudulent sickness claims to profit from compensation.