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The letter is not attached. Can you please try again?
That is a serious letter written by an experienced lawyer.
They are likely going to sue you whether you take the posts down or not. They are saying they will sue for more if you leave them up.
They are not quite true in their presentation of the law. If the allegations are true then it is not defamation and you are permitted to post your allegations anywhere. As well, you are free to provide your own opinions so long as they are not mixed with lies.
In BC one cannot sue for defamation in Small Claims Court which means that you will be sued in the Court of Queen's Bench and you will need your lawyer to defend you.
In my view your best next step is to retain a lawyer now and have the lawyer write this lawyer back explaining that all you said is true and that you will be vigorously defending the lawsuit.
It may be that if the client is vacillating about suing that will stop them.
Does that help as a starting point?Please feel free to post back with any follow-up questions you may have. If you don't have any then I hope I have earned a 5 star rating but if you don't feel that I have please don't hesitate to reply back and let me know what more I can do to assist you. Finally, please know that even after you rate me I will be here for you and you can ask follow-up questions if you think of them later on at no further charge of course.
You can certainly sue them in Small Claims Court for the $800.
Is there anything more I can help you with at this point in time?
You need a lawyer that does general civil litigation and who has had a couple of years experience. You don't need a senior lawyer.