I can see both sides here. If they are willing to take you to court, obviously they are not going to be able to deny that you had any type of business arrangement with them. If you think they seriously will go the court route, I would try to offer a settlement for maybe 1/2 of the amount. Even though you said that you sent them home for only the one day, I can see where that could ber taken as terming care. How would they be kicked out one day and welcomed back the next? That would be awkward all the way around IMHO.
Good luck in whatever you decide to do!

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