[46Bit]

> what will be the best way to escape from such a mess?

You have a few options:

1. Do nothing. Your most employable staff will leave to escape the abuse.

2. Try to manage the relationship. For instance have all communication go through one person who is empowered to terminate the contract. Set boundaries that if they behave abusively you will terminate the contract. If the client is heavily reliant on you, consider raising your price immediately as you're going to be doing a lot more work than you'd expected.

3. Dump the client immediately. Your staff will thank you but may worry about the company's viability.

4. Keep the client for now (maybe do #2), very actively look for alternate work, and bring the contract to a close once you have new clients.

Whatever you do, express clearly to your staff that this behaviour is not OK, and share what you can about how you are going to shield them from it.

[tubularhells]

What he said. If you don't act, people who make to your company will leave. Fire the client before you need to hire new people.