How should we handle this case?

We were living in a rent stabilized building from 2003 to 2007. Our lanlord wanted us out so badly. In 2007 we agreed to move out with a settlement of 8 months' rent by 6/30/2007. We notified the landlord the move on 6/28/2007. We hired the mover to vacate the apartment on 6/29/2007. We started early in the morning until 5.30 pm to move the furniture out of the apartment. Then the mover continued to move from the parking lot to our new place. We gave the super the keys because the office closed at 5pm. We terminated the electric sevice and phone service on 6/29/2007. Several months later, the landlord sued us for stay. The landlord had the Marshall to allow them to have legal possession of the empty apartment on 7/16/2007. The Marshall said "Legal possession equals eviction. The landlord is entitled to sue us for the settlement they paid us." Any ideas how should we handle this case?