Copyright Infringement/Fair Use

I did a Google Image Search for an image to use as a "banner image" for a particular blog post. It was basically a redirection to another already-posted article that I was linking to with my post. More than two years later I receive an email from the guy who took the picture, claiming I infringed his copyright, and that I owe him money. I immediately took his picture off my blog, and deleted the entire post. My blog is merely of an entertainment/news-reporting nature, and I make no money from it. I have not replied to his emails. Does he have a legal case against me?What is the name of your state (only U.S. law)?

Not only did you make a copy, you used it. Yes, by strict reading of the law you are in violation.

In this instance, even on a more reasonable reading of the law, you don't really have a case. You took another's image and used it as though it was your own in interactions with others. That is always going to be a violation. It is not going to be an inadvertent violation either. (Well, if you just linked to the banner and it came through rather than copied and uploaded it, it *might* be inadvertent. That could change the level of damages you would owe.)