Yeah, I’d be wary of hiring the developer even if he’s in the right.
If you pay him, you'll have no problems.
You were planning to pay, weren't you?
It's not complicated... I don't trust the judgement of someone that behaves this way. I have no idea what the contract said, or who is in the right. All I know is I'm not going to take the chance that they don't agree with the contract and now I'm litigating on Facebook....