Katherine Heigl and Jon Favreau got physical while arguing over who would pay the bill after a meal together at the Chateau Marmont.

The former 'Grey's Anatomy' actress and the 'Ironman' director each insisted on picking up the tab following the business meeting at the famous Sunset Boulevard hotel but in their eagerness to pay, accidently knocked over a glass of water as they each attempted to grab the bill.

A source told the National Enquirer: ''When the waiter brought the bill, Jon tried to grab it - but high handed Heigl ripped it right out of his paw and shouted 'It's on me'.

''But Favreau wouldn't hear of it. Snatching it back quickly, he recoiled in horror as Heigl, making a desperate dive for it, knocked over a glass of water.''

Eventually an embarrassed Jon allowed Katherine to pay.

The duo were in discussions for an upcoming project.

Katherine recently came second in a list of most overpaid stars as her most recent film 'One For The Money' earned just $37 million and cost $40 million to make.