Legal Question in Business Law in Florida

Contract law question-Grounds for suit?

I hired a Arizona website development co. in 6/08. ( I live in FL). The contract was for delivery of a functional website by Sept 08. Myriad problems ensued thru Sept. The website was above the skills of the developer. He persisted and declared the site ready for launch a couple of times, but each time it was non-functional. He could not fix it. I had no choice but to find another developer. He took responsibility for all the problems that ensued. I agreed, by email, to accept about a third of my costs back, and cashed the first of 2 checks. I did this because I believed I had a site that was almost finished, since that is he represented it. At first glance, the new development company I hired thought it looked fairly complete, but once they began work they found it is so incomplete and non-functional, that it is cheaper for me to have it completely rebuilt . I have lost $8000 to my original developer for a useless product. I asked him to refund me more money on the grounds that the site is more incomplete than he led me to believe. He says I agreed to the refund, and refuses. He has not sent the second check. Do I have grounds for a lawsuit or did I sabotage myself by agreeing in an email to the partial refund? Please help.Thanks

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