About a year ago, I signed a contract with another small business, contracting one of my clients. In the contract, I had misspelled the other party's name in three places by one letter which he crossed out and corrected before we both signed the contract (with his correct name of course).

Note that I had listed names his business name in the contract also (John Doe aka ABC Business)

He failed to pay me the agreed monthly fee from right off the bat and once I contacted him, he sent me 1/2 of it ($1,200). I then never heard back from him and tried contacting him a few times. I finally sent him an email asking for the balance. I just got a response from him saying that he has talked to his attorney, and since his name was misspelled (although corrected by himself and signed with his correct name), the contract is null and get this, is threatening to sue me for the money he already paid me.

I think he is blowing smoke in my face hoping I go away. Will I have a chance to collect the balance and attorney's fees if I hire a lawyer?

Thanks much for any advice you can give.