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A defendant who prevails over a plaintiff in a lawsuit can sue that plaintiff for malicious prosecution. It's pretty tough to win. The new plaintiff (former defendant) must prove that the original lawsuit was totally without merit and frivolous.
But the pants suit guy apparently was basing his suit on the dry cleaner guaranteeing satisfaction, and when they lost his pants, he decided he wouldn't be satisfied unless they paid him some exorbitant amount of money. A reasonable jury could decide that was malicious prosecution and award the dry cleaner damages for their attorney fees and court costs, as well as punitive damages maybe. Then the dry cleaner would just be faced with enforcing that judgment, a process for which attorney fees are not available.
BTW, this is a matter for state law, which may vary from state to state.
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