The fact that you dropped the production database sucks. However you stayed around and fixed it. I can't really say anything more. My bet is we all handle lots of sensitive data around here. Our worst nightmare is to drop that data by accident. Stuff happens...fix it and move on.
I understand we are a litigious society but if your knee jerk reaction is to bring in lawyers something is wrong. My hope is this post will make it around to Somrat and Tim (I've never met either of them) and you two will resolve it amicably. Maybe I am delusional but good character still counts for something.