The punch-up broke out on Friday afternoon in a Dianella complex in Perth, which houses three retired Catholic priests.
Fr Thomas Henry Byrne appeared in court on Friday charged with grievous bodily harm over the incident involving his neighbour, 81-year-old Fr Thomas Joseph Cameron Smith.
It was not until Fr Smith returned to his unit that he realised the item he had picked up and put in his pocket was his right ear.
Fr Smith wrapped his ear in a tea towel and drove to Dianella Medical Centre, where staff phoned for an ambulance and alerted police. He remained in Sir Charles Gairdner Hospital after surgery to save the ear.
Fr Byrne sported a black eye when he appeared in East Perth Magistrates Court on Friday morning where he did not make a plea.
Police prosecutor Chris Lawler said Fr Byrne did not have a police record but he had concerns for the safety of the victim if bail was approved.
"They live in the same complex but they are both funded by the Catholic Church," he told the court.