I did read his blog on the google cache and he wrote a bad review of the restaurant. Now normally, most restaurant owners would just brush of a bad review but this review must have really gotten onto his nerves.
I think they would most probably reach an out of court settlement.
My solution? Improve the food and service, invite a bunch of bloggers over and see if they write a better review. Now everyone knows your food really sucks because they're probably like me, reading the google cache of the original bad review of the restaurant.