Shia LaBeouf was placed in handcuffs by police after a fight broke out in the early hours of Saturday morning (February 5).
The Wall Street: Money Never Sleeps actor was involved in an altercation with another man outside the Mad Bull's Tavern in Sherman Oaks, California, after he was reportedly called a "f****t" by someone who asked for an autograph.
Mark Mastro told RadarOnline.com: "My girlfriend saw Shia, and told me. I wanted to get a picture with him so I went over to his table, sat down next to him, and told him I was a fan of his. I called him Mr. LeBeouf.
"He didn't want anything to do with me. He said he just wanted to chill and refused to do a photo. I walked away."
Later, outside the bar, Mark and a friend tried again to talk to the 24-year-old star, before insulting him with the gay slur.
Mark said: "My friend said, 'What's up Shia?' Shia told him to 'Get the f**k out of my way.' He was slurring his words.
"That's when I said to my buddy, 'Don't worry, he's just a f***ing f****t anyway.'
"He turned around, cursed me out, and I started laughing."
However, the situation turned ugly after Shia ran from his car and charged at Mark, only to end up in a headlock by a bouncer who handed him over to nearby police.
He added: "A bouncer put Shia in a headlock. A cop just happened to be driving by and saw the commotion. He pulled up the bouncer literally handed LeBeouf over to him [sic].
"Apparently the cop called for back-up because there were at least seven other squad cars there in minutes."
Despite the commotion, no charges were made and no one was arrested.
Shia—who broke up with British actress Carey Mulligan last year—has a history of run-ins with the police.
He was arrested on suspicion of drunk driving in 2008 and was charged with misdemeanor criminal trespassing after being found intoxicated in a drug store in Chicago in the same year.