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Did you contact him again after I told that you shouldn't do so?
He is generally correct on the law but, again, he was incorrect on his measure of damages. Also, you'll note at his point that he is no longer asking for money and he has still not provided any proof that he is the owner or any explanation of how someone got a copy of his "unpublished short story" which before he was calling a book.
You should still not contact him and have a local lawyer contact him per his offer and send him a settlement agreement where you agree that you don't have any copies and won't ever publish them.
As I said, if you contact him only encourage him.