Well wish me luck....

[bright sparks]

Honestly I feel that if I drop my case then what is the point of even having a contract in the first place

I think this is how I would feel too. To have them drop their case, you have to drop yours first is so ridiculous, just proves that they are in fact the ones suing you out of malice and just in retaliation, not because there is actually any real and genuine distress caused. Some people are simply ridiculous. It's easy for those of us not living your life right now to say what we would do, but to actually be in your shoes is something else entirely, it must be tough...I feel for you.