technically? sure, of course they'd be held reliable for damages. in reality, though, it won't exactly be simple to do, and most often this kind of stuff goes off unpunished. unless you have their full name, know where they live, have a decent amount of proof, and are willing to spend time and money on the matter, you should probably just move on.
no, well...hes threaten to hack the site i do got his name, location, and all of the chat logs... i am willing to spend money to take him behind bar
The best option for newbie is to report their host and let them manage this issue.. This will atleast help you in protecting your website.
Contact your local law enforcement and let them deal with it. Basically he's committing extortion if he wants something to stop him from doing it.
I think also make sure you have the server ready to log his activity if he makes a move. Actually I thought "unauthorized access to a computer" is now a crime punishable by life in prison?
Keep logs of everything for proof. You may be able to report him to his ISP, or perhaps your webhost also knows ways to deal with hackers that will actually get the hacker into trouble. As others have stated, it's hard to get anyone punished for cybercrimes even if you report them to the police, unless it was something like kiddie porn or someone hacking a major corporation or government site.
It sucks. I've been hacked a few times from people in Pakistan using proxies. Not much you can do but try and make your site more secure.
Reporting IP wont help at all.. Most of these hackers are on proxies which can not be tracked most of the time...