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Yes he was sued. I read somewhere that Castaneda had no recollection of meeting Sanchez. this is from the Sustained action website:
On March 5, 1998, Drooz filed numerous supporting declarations aimed at proving Castaneda's "damages" against Sanchez. Many of these declarations dealt primarily with Sanchez's alleged conduct at his small workshops, held in Mexico and other countries. These included a declaration by Castaneda that states: "Because Sanchez conducts activities at his seminars that pose a danger to life and limb (e.g., directing participants to walks dangerously close to precipices, burying participants in desert sand, etc.) I fear that I might be sued if anyone is injured during such activities. Further, Sanchez's wrongful diversion of participants away from the Cleargreen seminars is a constant drain on my business activities that will undoubtedly continue unless enjoined." Another declaration by Francisco Victor Bringas, a former Sanchez workshop participant, claimed, "I stopped attending Mr. Sanchez's seminars because I came to know Mr. Sanchez as an egocentric person who took advantage of his magnetism with women. Specifically, I noticed that individuals and couples suffered psychological harm when Mr. Sanchez would use his charisma to seduce married and single women, although he never forced them." A Georgina Silva also signed a declaration that claimed, "I stopped attending Sanchez's seminars because some of the exercises he taught made me feel uncomfortable. For example, he would instruct everyone to sit on the floor and turn off the lights so that it was very dark. Then he would tell us to reach out and touch each other. This made me feel violated. I couldn't understand how such an exercise could come from the teachings of Carlos Castaneda."--Wool Bridge (talk) 13:16, 17 October 2016 (UTC)[reply]