However, our client was a hedge fund manager with an in house attorney who kept trying to convince me that because of my age (I was 21 at the time) I had no idea what I was doing and was being unethical for subcontracting work. He refused to pay and threatened to have his in house attorney waste enough of our lawyers time to make it unfeasible for us to pursue litigation (we didn't have a lawyers fees clause in our contract in case of disputes). After a lot of back and forth, he ended up settling for 50% of the contract amount ($12.5k IIRC) and we didn't pay anything to our subcontractors as a result of their breach of contract. The $12.5k plus some other purely advisory (non-development) work we did paid for us to stop arbitraging consulting (which was great since we didn't have any subcontractors anymore since we fired them) and to live on for the rest of the summer and work on our startup.
We raised money from YC right before that money ran out.