The incident occurred after the launch of a Proton-M carrier rocket from the Baikonur space center leased by Russia in nearby Kazakhstan.
Although the shepherd was not physically harmed, he is seeking moral damages. The three-and-a-half-meter (11 foot) long fragment of rocket fell several meters from his door, badly frightening him.
An Altai Ecology Institute spokesman said that, "As far as I recall, there have been two incidences when court cases have been instigated in connection with falling rocket fragments in Gorny Altai. Both times the claims for compensation were satisfied."
No toxic traces have been found in the area where the rocket fragment fell. An emergency services official in Moscow said the fragment would be removed from the area on March 15.