Blind battle vs. loose passive

[TheDudeChad]

Guy is 40/12/.9 over only 100 hands, pretty loose passive preflop. He has been betting and raising plenty postflop though. A few hands earlier I saw him check behind the turn after hitting top pair and raising a blank river, so he is probably capable of spewing hard.

So, onto the hand. I have no idea what the delayed continuation bet means, and no idea how to defend against it. I don't know if you guys have noticed this, but I'm seeing this move being pulled more and more often in blind battles. My plan was to call a blank river. Thoughts?

PokerStars $5/$10 Limit Hold'em - 5 players
Hand Converter Tool from DeucesCracked.com

Preflop: Hero is BB with 8[img]/images/graemlins/heart.gif[/img], Q[img]/images/graemlins/heart.gif[/img]
UTG folds, CO folds, Button folds, <font color="#FF0000">SB raises</font>, Hero calls.

Flop: (4.00 SB) K[img]/images/graemlins/heart.gif[/img], 7[img]/images/graemlins/diamond.gif[/img], A[img]/images/graemlins/spade.gif[/img] <font color="#0000FF">(2 players)</font>
SB checks, Hero checks.

Turn: (2.00 BB) 8[img]/images/graemlins/club.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#FF0000">SB bets</font>, Hero calls.

River: (4.00 BB) J[img]/images/graemlins/diamond.gif[/img] <font color="#0000FF">(2 players)</font>
<font color="#FF0000">SB bets</font>, Hero folds.

Final Pot: 4.00 BB