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Is this is a court summons?
That is a claim form.
The truth is, it depends whether you have the time to fight this. If you do, then contest it on the basis that we discussed.
If you do not then make a full and final settlement offer. They will not want to go to court either as it will strike at their manpower too.
Overall though, you have a good defence it seems to me.
Can I clarify anything for you?
Respond to the claim form setting out your defence.
Overall, seems to me you have a very good run.