Oh my... look, if you're being sued you need to hire an attorney. End of discussion.
However much you will lose paying that attorney and as a business owner trust me, I know how much they charge, it will probably be less than you stand to lose should the other person be victorious in their suit. An attorney will also look into the option of counter suing, recovering costs from them, etc. It's been said a few times in this thread, but you need to get an attorney and fast. Stop screwing around, regardless of how much it costs because you will be in a world of hurt if you don't get someone on this soon.
Corporal made a good point. A lot of law schools have legal clinics or offices you can reach out to for help. They probably wouldn't be interested in this case but it would be a good start.
Last edited by jinxremoving; 08-02-2012 at 05:59 PM.