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Below is not specific legal advice

You could either ignore it or send a response like below.

“In order to be able to assess the basis of your claim, either at law or equity, can you please provide the basis and grounds (either common law or statutory) for your claim. Should you (your client) initiate a legal claim in the court we require 5 business days notice in order to be able to fully and formally engage our legal representatives”

It is telling them you don’t believe they have a legal basis, if they fail to provide this and you got to court and lost then this may help your arguments on not paying their legal costs as well.

Most of the time people go away and don’t proceed, but there is always someone with a bad attitude and sufficient money to run something just to annoy you or seek their revenge etc.