As I said, the "offer and acceptance" part of the contract almost certainly will have been solidified - and have FULL LEGAL WEIGHT - in the e-mails which you and he went back and forth on, finalizing the design of the instrument. Unless you specifically SIGNED something agreeing that he would be exempt from all penalties cause by his mistakes, he can be held liable. He can't retroactively invent contract terms you've never seen....
If I were you, looking to pursue this, I would first print out all the emails, even two copies (no, three!). Then go through your copy with a red pencil and construct a "narrative" of the process by which you came to agreement on the design, material, and TIMING of the instruments. Whatever you do, do NOT change the order of any of the e-mails; it'll just mostly be deleting extraneous details. When you've got that firmed up, print out the essential e-mails (two copies), and then decide if the "story" would be better told with the injection of certain narrative elements to tie it together. If so, add them to the third round.
What you're looking to do is simplify and focus the EVIDENCE contained within your e-mails, but without deleting or distorting anything - remember he has the same records. You simply want to show what's happened. He's clearly been practicing willful deceit in some instances, so telling the truth is an essential element that separates you from him... I really, really don't think he wants to expose both his business practices and his lack of competent luthierity* to the world, so this is a weapon. In looking this over, his ability to lie fluently & constantly, everything from the health problems to his suppliers are all crooks to his employees are all crooks is pointing to a basic pathology in this guy; this would mean that the nicest of his customers are simply going to be losing the most, and only the ones who stand up have much hope of recouping... anything at all.
Having looked over the crimsonguitarsreviews website - the other guy - more carefully, I would be quite concerned about your plan to accept the bodies as they are, and he'll extract a promise of no further action? It's obvious from a few of those pictures that there are body woods separating along glue joints because they were never planed flat and matching; there's no amount of further work that can salvage that sort of fuckup.
*(Luthierity: well, it's a word NOW, dude.)