What do you do?

[Grimtooth]

Ok i know this could well turn into a flame fest so lets all try and keep it civil.

What i would like to know is what you all would do in this situation from either viewpoint.

Today i was smuggling and as i got to Houston a police tagged bomber was camping the docking ring and i hot docked. Yes i know you lawfuls say it is ooRP but if you are going to camp out in front of the docking ring i will hot dock.
Anyway the pilot tells me to halt just as i dock so i start my Mr. Innocent RP how i was empty and just came here to load a legal cargo yada yada yada. The pilot demands i undock immediatly so i load engine components as i am RP'ing with the guy and undock, as i am moving towards the jump gate he hits me with a CD.
So i start playing the indignant trader bit and he demads a 4 million credit "fine" for smuggling. I ask what proof he has i have commited a crime and only get more accusations. Now normally i will not use OOC chat at all in game unless in private but i asked the guy "// do you have a SS of my cargo?" and he says yes so i reply "// then you can tell me the exact amout of cargo i had right?" and he replys "yes i can" so i wait for him to call up the SS and after a bit i ask if he has the amount of cargo i had and he replys with a number not even in the ballpark of what i had. So I reply that he had the wrong guiy and i am a legal trader and start to enter the jump gate.
At this point he opens fire on me and i start yelling for help in system chat because a rogue police vessle is attacking me. He replys that i have broken the law and if i do not pay he will destroy me.
Now he has absolutely no proof i broke any laws but at this point is trying to blow me away. I have tried to run without firing and making the stuation worse but the guy keeps dropping the trade lanes so i engage and destroy him. not what i wanted to do but i will not go down without a fight.
Now don't get me wrong i am NOT saying the guy was in the wrong here but from an RP standpoint i got very little out of a situation that had some very good RP potential. About all i got from the guy was I R COP U R criminal pewpewpew.
When i smuggle i carry an amount of goods that are a random amount less than what i can load and i KNOW what that amount is. That way when i get stopped and i ask them how much cargo i had i know if they have proof or not. In a my word against thiers situation i will not take thier word for it unlees they have proof and if they do have proof i will pay the fine and RP it as well as i can. I don't think asking for proof of what a smuggler actually had onboard is too much is it?
Oh and if he had blown me up i would have took the lumps and went on with having fun in fact i fully expected him to win the fight and can't figure out why he did not.
So what would you all have done?