Legal/Ethical lawyer bills??

[DedicatedFather]

What is the name of your state (only U.S. law)? I am in VA (Lawyer is in PA).

Sorry ahead of time for the long post, but lots of background to the questions I have.

I retained a lawyer in PA for legal services in my child custody case. This was back in May and from May-beginning September everything was good. Services were provided, money was taken out of the retainer. The monthly statement of charges come and everything looks good (statement goes until the middle of the month) still have about $1500 left, no problems. Sept comes along and I have a concilitation conference which required my lawyers preesence. That was done, no problem. Business continues as usual, e-mails being sent to lawyer, phone calls done through the mid of OCT.

I now get my statement at the end of October and to my supprise, there is a BIG problem. It seems that the day that I used my lawyer for the concillation conference used up ALL of the retainer (of what was left) and then a little some (about $150 or so). All the other phone calls, e-mails that were done for the ENTIRE month were then sent to me as a bill (totaling $1000).

Now, I was NEVER notified in any fassion that my retainer was all gone from that single event. My former lawyer knowingly let me accure a higher and higher bill by letting me continue to contact him and use his "services"; that if I knew I was out of money would not have used. In addition to the bill, I also received a letter from the lawyer basically stating
"looks like I am too expensive for you, and you can't afford my services. It seems that I cannot provide you the services that are required for this case...Here are cheaper lawyers that I recomend. Good bye, good luck."

My lawyer now dumps me 2 weeks before my next concillation hearing and I am in a mad rush to start contacting these lawyers, praying that one will accept my case in such short period of time. All the while thinking how all of this could have been avoided (both money wise and panic) if I was told about my retainer status a MONTH PRIOR.

I was finally able to get him on the phone and try to figure out what is going on. Pretty much got the "So sorry, too bad" routeine but then he said that he was going to cut $500 from the bill because he "knew I was under financial strain" AND that he would talk to my NEW lawyer on "his dime" (my former lawyers). At the time, I was driving home, and tired, so I agreed. I sent him an e-mail, and left a phone message for him stating who my new lawyer was, their number, and said to talk to them ASAP because I was a few days away from the concilliation conference. I meet up with the new lawyer, find out that my old lawyer never called, or made any attempt to contact. To this day (not that it would make any diffence now) he still has made no attempt to live up to his part of the deal.

I received a letter 2 weeks ago from my old lawyer, stating that I pay now or he will take legal action against me. I replied to him stating that he did not live up to the agreement and that I sustained substantial legal fees (that could have been minimized) because of his inaction. I sent him a check for $50 and said good bye. Of course, got a letter back stating "you have 10 days, pay or I will file legal action against you".

Now the questions.

1) Should I actually pay the rest (even if I don't think I should)?
2) Should I take these "threats" seriously, or just wait and see if he will cross 2 state lines to serve me in small claims ct?
3) Is what my ex-lawyer did legal and/or ethical based on the background info?
4) Even if I did go to court, do I stand a chance based on the background info?

Thanks all to read and respond.