libel

[Chaosium]

States involved: NH, MA
Situation:
I live in New Hampshire and work professionally as a Web Developer in Massachusetts. I also do freelance work as a Technology Specialist and Web Developer in New Hampshire.
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I was asked by someone to research an Internet Stalker, who had been harassing him for several months. Having done that, and having put real names to the online usernames, I was asked to testify in a pre-trial hearing in Massachusetts.
The case was dismissed, but the alleged stalker now knew my name.
Almost a year later, my employer received an email from the alleged stalker making accusations against me such as "hacking into his secure website," "personally profiting from consulting fees while utilizing the company's computer network," etc.
I know that this email is solidly actionable, and my employer sent the man a cease-and-desist letter.
January 1, I received a reduced contract (only 6months as opposed to my standard 1year) with my employer, which I believe can be directly attributed to his libelous email and doubt cast upon my reputation.
Given the reduced contract, I do not feel that I can safely assume the $5k-$10K it would run me for what would be a drawn-out legal battle in civil court.
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Questions:
a. Am I able to file a libel claim in SCC (small claims court)?
b. Which state's SCC should I file in?
(MA because the letter was sent from/to there, or NH because I live there?)
c. Can I claim the maximum amount in SCC because there was (in my opinion) deliberate and lasting damage done to my credibility and good name?
d. Any additional advice you may have as to the steps I should take...

Thanks for taking the time to respond.

 

[JETX]

Q1) "Am I able to file a libel claim in SCC (small claims court)?"
A1) Probably not. Most states small claims courts are for money damage cases only and would not hear an issue of defamation.

Q2) "Which state's SCC should I file in? (MA because the letter was sent from/to there, or NH because I live there?)"
A2) If you were able to file (see A1), it would be in MA. You would have to file in the same county as the writer.

Q3) Can I claim the maximum amount in SCC because there was (in my opinion) deliberate and lasting damage done to my credibility and good name?"
A3) Now you have hit on a BIG problem in this. You would have to PROVE your actual damages, not just suspicions and estimated amounts. Based on the information in your post, that would be very hard, if not impossible, to do.

Q4) "Any additional advice you may have as to the steps I should take..."
A4) Do a real good job on the contract so that it is renewed. And, forget about any unprovable claims to your 'damages'.