Brent McMahon, who owns McMahon's RV in Irvine, Calif., offered Monday to compete in a push-up contest to settle the breach of contract lawsuit that Lautner filed Aug. 23 claiming the dealership failed to deliver a $300,000 RV on time for use as a dressing room on the set of the actor's latest film.
McMahon and his attorney denied wrongdoing and said they will vigorously defend the case in court if Lautner, 18, doesn't accept the challenge.
The dealership said Lautner's camp had sought a $40,000 settlement to resolve the case, leading to the unorthodox proposal by McMahon.
The 47-year-old businessman said if he won the contest, he would donate the settlement money to Children's Hospital of Orange County.
Lautner's attorney Robert Barta declined comment, citing the pending lawsuit.
Lautner's lawsuit claimed McMahon's failed to complete the customized RV on time, and it needed additional work after it was delivered.
It was unclear what upgrades Lautner sought.
McMahon said the vehicle was given a custom paint job.
Lautner gained fame for his role as Jacob Black in the "Twilight" movie series.
He is currently filming "Abduction" and will reprise his role as Black in the two-part "Twilight" finale.