The guy is blowing hot air. It sounds like a scammer who wants something for nothing, then will just throw out threats.
In general people who intend to file a lawsuit would just do it. People who threaten lawsuits are full of #*&$. Not to mention so are people claiming to be law enforcement. If I was you I would just call his bluff.
First of all it would make no sense to sue for such a small amount. Second, I would welcome it if I was you. You have plenty of evidence against him regarding this scam, as well as potential threats...
So it's ok for him to threaten you in to letting him.
Keep the stuff and do a paypal chargeback for funds he already "agreed".
But if you try to get your stuff back, or Paypal dispute he'll sue?...
If you have all your stuff showing the agreement between you two, etc.
File a dispute with paypal..
If you have a way of taking your stuff down, do it!.
Then tell the crook to have a nice day!..
Tell him to go bip with the biiiip and biiiiip him self!.
What does he think, that all your work is for free?! I read thread you linked to and one mistake you did, was give him his money back. Why did you do that? He just tried to scare you and he succeded.
Do not let him get over with this nonsense. You should sue HIM!.
Good luck and sorry about your issue...
Threatening to file suit without actually suing is frequently referred to as "Barristry", and is actionable. OTOH, nobody is going to sue anybody for a couple hundred bucks. Even the time spent in small claims preparation would have costs (depending on your billable rate) that far exceed damages...
If the modifications are on his server you could be breaking the law by accessing the server without permission regardless of whether he gave you the login details prior to that.
Regarding suing you, I very much doubt he would be successful in attempting to sue you or take you to small claims court. He has reneged on a contract...
I never once threatened to take down the forums.
Basically, what happened is this:.
He got vBulletin 3.7. The ad mod he wanted was only available on 3.6. With the new upgrade, he lost the old ads.
The ONLY ad mod out there compatible with 3.7 wasn't working right with the other mods. Since I wasn't able to magically pull a new mod out of my @$$, he fired me and requested his money back, and was threatening to take me to court...