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Disclaimer: lawyers in the singular are fine. But as with almost anything human, when they're grouped together in numbers greater than one, they can be total dickfucks.
Fuck it. Set up a metafilter defense fund and lets see this one through to the end. Languagehat's response, although admittedly prudent, is an aquiesence to bullying. Unless, of course, he did say something bad & untrue. It's interesting that the people doing the suing are from the U.K. If anybody wants to accidently leak what was on his website to me, and if I don't consider it to be bad form., then I'd be happy to bang it on my own website with full "contact me" information.
Also, contact the EFF, and possibly Danny O'Brien. He has metafilter handle ntk, although I'm not sure his EFF commitments and metafilter loyalties are large enough that he could and will help.
That business about "[w]e also require your proposals for compensating our clients for the serious damage caused to their reputation" seems like either
a) a trap to get lh to admit culpability;
or b) an attempt to browbeat lh into settling because the lawyers know they don't have a case.