My question involves defamation in the state of: Japan but any general advice would be appreciated.
Hello, I am planning to file a small claims suit against an unprovoked drunk pedestrian who attacked my car causing $3000 worth of vehicular damage. He targeted my car because he was having an argument with his wife at a traffic crossing and my car happened to be stopped at the lights. A case of being at the wrong place at the wrong time. The drunk was prosecuted by the public prosecutor and subjected to a fine but only after an ordeal I had to undergo as he lied and said that he was "hit" by my car first. This false accusation was finally dismissed by the public prosecutor.
Now, when my lawyer sent them a letter to pay for the damages, the defendant's lawyer said that they would file a counter suit for libel if I should go to the small claims court!
This stems back to the period before the defendant was prosecuted when my lawyer sent a registered letter to his residence informing him that I wanted compensation. He refused to accept it and returned the notice to my lawyer without any response. Needing to contact the defendant, this same letter was sent to his employer. I was given his employers' information by the defendant himself in his drunken stupor (believe it or not) during the 15 minute attack on me and my car. He now says that since his employer found out about the case and received a reprimand from management, that I should be accountable for libel.
What is my recourse and chances of defending myself if he should file a libel suit if I decide to file for small claims? Does he have a good case given that he told me to contact him at his office if I had a problem during the attack and even lied to the cops/prosecutor of being an accident victim during the investigation? I know small claims may not be worth it but I need closure, the stress of letting this punk off is destroying me and my family.
Any advice would be appreciated.

