Having read this thread and given it my consideration the following is my theory about the "competitor". He is not exactly in direct completion with you.
More importantly he will likely treat his customers with the same disregard and disrespect he has treated you. If he hires employees he will also not treat them well. In the end I would expect him to fail in a short time unless his rich Daddy is backing him(I've seen this happen).
I think you have gotten great advise, there may well be good reasons not to follow it but my opinion supports the majority of the advise: Forget any direct action with/against this guy, Refine and/or redirect your business.
You will prosper and benefit not expending energy on this guy. 73, Mike
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