Did you recieve any payment? If not, then I don't think you have anything to worry about, as far as I know, online auctions are a "Pay first, Send it second" type of thing... If he hasn't paid you, and you have the email from the ISP returning your email, then I don't think you have any obligation to send him anything, unless he has a new email and still wants to complete the transaction... but I don't think he can sue you... Of course IANAL, but I think you're safe.
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My opinions are my own, you may or may not agree with them, but those are your opinions, which I also may or may not agree with.
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