I was playing someone I play with quite a bit and we had a interesting thing come up in the Corner of the board. I had some black stones forming a border and right inside mine to the wall he had white ones. I had 3 Black stones within his thing of white stones. This made each of our liberties at two, his group and my group of three stones. What Happens? I can't try to kill is group because then I would lose but he can't try to kill me or else he will lose.

Both groups are alive if the situation doesn't change. Assuming that you are using standard Japanese rules, nobody gets any points in that corner.

You seem to have discovered seki. Both groups are alive, and neither player gets any points there.

Thank you