Instead of addressing the issue and making sure the work was done and that nobody had stolen the jewelry, he instead sues her and then it makes the front page of Slashdot.
So is this the Streisand Effect? If he ignored it, or dealt with it better, it wouldn't have gotten so bad? Didn't the contractor just make this worse for him now?
Freedom of speech does not apply, it is only protection from the government. He has to prove her statements are false and she knows they are false and that she meant to defame him. If the statements are true, well sucks to be him.