He was trying to bleed them out. If he lost the case, he would have to pay their attorney fees AND the damages.
The settling party usually pays the attorney's fees upon settlement.
According to the court documents the attorney's fees were pro bono, so he would have paid nothing. (Filed by Tom Brejcha, Thomas More Society)
The Michaels settled with him, when if they had a real case they could have closed down his clinic.
Oh well, I guess it was all about the money.