Lennon was working with a group of musicians during recording sessions for his 1975 covers album Rock 'n' Roll but the antics of Nilsson and The Who drummer Moon infuriated bosses at A&M Studios in Los Angeles.
The former Beatles star wrote a letter titled 'A matter of pee' to producer Phil Spector, complaining that he was being held responsible for a series of bizarre incidents after the musicians were threatened with eviction.
Lennon writes, "Phil - Should you not yet know it was Harry and Keith who p**sed on the (mixing) console. Jerry (Moss, A&M boss) now wants to evict us or that's what Capitol tells us. Anyway tell him to bill Capitol for the damage if any. I can't be expected to mind adult rock stars nor can May (Pang - Lennon's girlfriend and assistant) besides she works for me not A+M . I'm about to p**s off to (rival studio) Record Plant because of this c**p."
The note, which dates from Lennon's 'Lost Weekend' between 1973 and 1975 when he separated form Yoko Ono, was later given to guitarist Jesse Ed Davis who worked with the Beatles star. It is expected to fetch between $6,400 (£4,000) and $9,600 (£6,000).
Louise Cooper, of Cooper Owen Music Media Auctions in London, tells Britain's Daily Telegraph newspaper, "This is a rare note in that it mentions so many well-known figures from that era... The note will be of huge interest to Lennon and Beatles fans around the world. And the provenance is excellent, coming as it does from Lennon's session guitarist Jesse Ed Davis."