Contractor being sued again for same issue that was closed two years ago

Hi my hsuband is a contractor and he was sued by a customer back in 2006. My husband sastified the judgement by a amended stipulation order and was vacated in Feb. of 2007. My question is now the customer wants to sue us again for he is in trouble for loosing his home, and wants us to pay him consequential damages, can he do that? It has been two years now since it has been vacated, and he is renting the house out and has been for 1.5 years. Plus we had the buliding inspectors pass all inspections and the city gave him an occupancy permit.