The work you've done, till paid for by him .... or another client is yours to keep. If he wants to deliver a contract and pay you for the work done so far, and a hefty "I'm sorry I was such an **hole" fee I'd be done with him.

I'd report him to the BBB so prospective workers etc are warned.

As for the behavior on the phone that's unaceptable. I work in a call center and I don't tolerate it. Even when we've really f*cked things up and deserve to be called every name in the book you're talking to me, not a company, I'm a person. I will apologize up the yazoo if we blew it and even if we haven't done anything wrong as in "I'm sorry your payment that you mailed three months after it was due was late but..." and I can calm almost anyone down.

But I usually warn the caller I won't be talked to that way if they continue they go on hold till my ears stop ringing.

People are really rude these days.