(Not a lawyer and this should not be taken as legal advice, just my two cents worth.)
It does sound like bluster. It's certainly not grand theft (which would be a criminal matter), it's a contractual dispute. When people start throwing around legal terms they don't understand I always suspect that they either aren't serious, or that they know so little that their intent is irrelevant as it's likely to change when they learn the reality of the situation, the likely costs and so on.
My guess is that if you made him an offer - possibly just 50% of profit to date - he'd accept and go, but what you need to make sure is that any deal you do with him makes clear that the payment is made in full and final settlement of the matter.
In the UK full and final settlement is a specific legal term (I'm guessing that there is a US equivalent) basically meaning that the matter is settled and the other party can't then return at a later date with a further claim. This should be stated clearly in the accompanying letter (make sure the letter and payment are signed for and you record all details) and also make it clear that by cashing the cheque he waives any right to further payment or claim against you or the company in relation to any business dealings you have had.
But the point others have made is valid - just because it's not worth him suing now don't assume it won't be worth it in the future.
Comments
(Not a lawyer and this should not be taken as legal advice, just my two cents worth.)
It does sound like bluster. It's certainly not grand theft (which would be a criminal matter), it's a contractual dispute. When people start throwing around legal terms they don't understand I always suspect that they either aren't serious, or that they know so little that their intent is irrelevant as it's likely to change when they learn the reality of the situation, the likely costs and so on.
My guess is that if you made him an offer - possibly just 50% of profit to date - he'd accept and go, but what you need to make sure is that any deal you do with him makes clear that the payment is made in full and final settlement of the matter.
In the UK full and final settlement is a specific legal term (I'm guessing that there is a US equivalent) basically meaning that the matter is settled and the other party can't then return at a later date with a further claim. This should be stated clearly in the accompanying letter (make sure the letter and payment are signed for and you record all details) and also make it clear that by cashing the cheque he waives any right to further payment or claim against you or the company in relation to any business dealings you have had.
But the point others have made is valid - just because it's not worth him suing now don't assume it won't be worth it in the future.