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In my experience a 50% settlement on a disputed debt -- especially one like this that's more-or-less legitimate -- is pretty standard. If you hire a lawyer, he'd be advising you to take it, pretty much without regard to the merits, because you're getting down into the territory where taking the settlement is cheaper than fighting.
I'd say, pay the man and move on with your campaign to make sure nobody in the business is ever again tempted to do business with these assholes.
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