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Subject to your duties to the court etc. you have to act in your client's best interests. Dropping a case that's been issued and landing him with a huge bill isn't that. He could just as easily come back out of the woodwork and sue you for his losses. He might not win but it's not worth the time/aggro to find out.

Accepting a decent offer on the other hand? No brainer.

He could just have easily been in hospital as anything else and be happy you got a positive result for him.