As much as I admire the candor & spirit of this, at the same time, I'd hate to have the chance of being completely destroyed by the lawyers. Dodged a bullet in this case, but to me, the downside is not even close to worth the upside. $400k contract, but if things go horribly awry, their lawyers are coming after you for millions, and drag you through the mud. Not worth it, in my opinion.
- legal fees are going to be in the $100k's
- he clearly has little money, so even if we win, we'll end up garnishing his wages for 40 years to get a fraction of what we sued for.
- we might not win, then we're further in the hole
So take the loss and move on. Thus from pud's side it's not an insane risk, but a calculated one.