First off, it sounds like you have the upper hand, with this attorney unable to prove the debt belongs to you. Moreover, the amount they are asking for is in question, since you have proof to show they are suing for the wrong amount. If the attorney thinks they have a weak case, they are going to be more willing to settle. You can certainly use what the Judge told the attorney to your favor. Shake this attorney up and put pressure on him to produce the note. If he is unable to, you can certainly go forward and try to win the case, thus owing nothing. Another option is to offer a settlement of less then 50% and use the facts already known to your favor. If anything, you may get a counteroffer around 50%-60% which you could settle on.
Attorney
Experience in misdemeanor and felony cases. General legal.