Re: Never mind
I think it is actually a fee cut rather than a pay cut, there is a vital difference here.
The client is saying they won't pay more for the contractor's services. As a contractor of 20 years standing I'm fine with that, after all, the market will value our skills according to the economic forces in hand.
Anyone who is contracting their services and is unwilling to negotiate with their client when renewal time arrives has missed the point. We are in business for ourselves, we take this risk because we like the freedom to work with whom we please, when we please for the amount the market can pay.
If my client refuses to pay what I am asking I leave, even if that means driving an Uber for a couple of months. I would humbly suggest my fellow contractors consider the same, unless they prefer to be a permie, then that's fine also, but suing your client because they won't pay you more than you require is really proving that you were not in business anyway.
Suck it up or spit your dummy and walk. Your business, your choice.