I'm not very experienced in this area but it sounds fishy to me.
Any time you rent a place it's highly recommended you sign a lease. That way there's some kind of legal proof you are renting from the landlord. Now, since you don't have a lease the biggest challenge you may face at the court is lack of proof. How will the court know that you actually rented this place from that idiot? How does the court know you are not lying if you don't even have receipts? The fact that he doesn't require a lease and refuses anything but cash rings a warning bell to me. Good luck at court. Hope it works out for you.
Next time though make sure you have some kind of proof whether it's lease, a housing document or receipt in case a situation like this occurs.