Yes. There's nothing that says you can't settle something amicably while still getting legal counsel. They've roped in their lawyer, now you rope in yours.
When you've found a lawyer, he/she will advise you on what to say and not say from that point forward. In the meantime, the safest course is to say nothing (or at least the absolute minimum you can) from now until then. If you've already sent an email you can't take it back, obviously, so when you get a lawyer be sure to give him/her a copy of the email (and any response you receive) so they can advise you on how it affects your position.
Well, they're asking me to pay like 5 times the original amount I charged them and this only came after like 6 months since I refunded them the deposit.
As for what went wrong, it's a case of both having a better offer (work at a startup) and burn out from bad experiences with other clients.
But generally, I would agree that you should just spend some time on it, and move on to focus on building your product and getting it out to market fast to validate your assumptions and business model.
I just made this mistake last year when I joined a startup that offered me a below-market-rate salary + % shares to "cover" for the lowered salary.
Sounded like a good deal as I was naive and this is my first time joining a startup and having to deal with all these equity thingy. Turns out after converting all preferred shares to common stock, there's virtually nothing much left.
"But that's not exciting, because that life path sounds like determinable and planned. It's as cruel as telling a young child that he/she will never achieve anything and will end up normal."
I think the most important thing for you to do now, is to get rid of the depressed and suicide thoughts. It sure helps to talk to people about it.
I'm rather messed up as well, as I gave up several well paying jobs to pursue my own startup dreams which eventually failed and I went the freelancing route which didn't work out too.
Speaking to people about my situation lifted my mood considerably and I urge that you do the same too.
Sort out those emotional issues first, and slowly plan to get your career back on track. Suicide won't solve anything.
Thanks everyone for taking time to read and offering your thoughts on my situation.
For the past few years, I've been working alone from home, locked away in my room for the most part, and well lurking on HN.
I feel lifted to see the responses here.
My other problem now is that I have too much work on my plate that I have trouble completing. Previously I naively took on new projects as the older ones seem to be taking forever just to sign off on deliverables.
And honestly, there was the greed factor too - it was nice to receive the deposit to kickoff a new project since I've not been getting a salary for the past few years.
But now they are all coming back at the same time and I'm overwhelmed.
And with my diminishing interest in backend programming, I'm hoping to partner with a backend developer to help me out. Do drop me an email (launchplus@gmail.com) if you are keen.
All in all, I feel really foolish about a lot of the mistakes I made during this freelancing period. I will be joining a VC funded startup for a full-time job after I'm done with my current contracts, hopefully that will put my career back on track.
I suppose I should still go get a lawyer right?