It is not crazy and not rare. I can sue you right now, personally, and you would need to pay someone to defend you in court. If you've never owned a business a

It is not crazy and not rare. I can sue you right now, personally, and you would need to pay someone to defend you in court. If you've never owned a business and have no relation to me, then probably you'll survive the suit just fine. But as you can see, OP had a business relationship with the person involved, and though OP probably won the suit in the end, he still had to pay oodles of money to protect himself. And if he lost, well, then there's my point.