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as people have said.. document everything.
from emails to phone calls to quick quips in the hallways... document document document. Also, remember it's not going to be instantaneous. When I wanted to fire someone on my team it took em 6 months of solid documentation.
Now about lawsuits... lawsuits can only happen when there's an infraction of employment law. As my employment lawyer reminds me on a regular basis, there is no tort or legal recourse for having a bad boss.
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I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.
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