I'm in a bad situation and need advice?

My best friend Krystal and I were out in town and her ex showed up at the place we were hanging out at. She and her ex (my former friend - long story) had a really rotten past so we tried to avoid any confrontation with him. Unfortunately for us, he did notice us. Immediately becoming confrontational, he came up to us and started a ruckus, demanding to know why she was with me, that I was asking for a beating, etc.

I tried to calm him down without resorting to force as I did not wish to start a fist fight in front of Krystal. However, that did not work, as he reached around and grabbed Krystal by the wrist, violently yanking her away from me. Without thinking, I instantly right hooked him in jaw, dislodging several teeth. While he was on the ground - out cold, mind you - I checked on Krystal. He had grabbed her with enough force to leave a mark.

This was a week ago. He is attempting to sue me for assault and is demanding over $3000 in damages. I do not have that kind of money. Any evidence I have that he started the confrontation is gone as the bruise on Krystal's wrist has healed. What do I do?
Go to court
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I'm in a bad situation and need advice?
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