You did really well. You were calm. You responded with poise. You bit your tongue when appropriate - did not rise to take the bait - did not escalate. In fact, when H attempted to escalate conflict - you de-escalated. Remember - H can only see what is on the outside - not what is in your head.
I can see that you are thinking a lot about why H did what he did. The really sucky thing about life is that we really cannot read other peoples' minds - yet we waste so much energy trying... I do it all the time in all types of R's... Don't circle about what you think might be in H's head. It may not be the best - it may not be the worst either. You do not have to decide where H's head is today.
This whole DB'ing thing takes time to work. You are suppose to look for baby steps in progress. Baby steps - you did well. I do not see that you could have achieved anything more than you did during that encounter. And really if the man just did not want to bump into you - he could go to a laundromat or send his stuff to a laundry service. I think the goal was to create an environment that H could return to to do his laundry again. I think you succeeded.
Settlement is separate from DB'ing to save your M. It is tough b/c you have two normally contradictory situations. Avoid settlement talk yourself and use your attorney as your mouthpiece. If H says anything - you can say - "oh really I had no idea - I am just doing what my attorney is telling me to do." That distances you from the negotiations - let the attorneys be the bad guy - we are use to it.
Now that being said - I am a big proponent of fair settlements. If you are unreasonable and go for the jugular - it just makes things nastier and the only one that makes money are the attorneys. Also unfair settlements tend to be revisited - and really in the event you end up D - do you really want to spend your post-D years fighting H?
I am sorry if my DB lingo is a little off. It has been awhile. The posts I noticed from your were to FLTC and whatisis. You have the ability to take a step back and see the big picture and a compasionate approach to life - no matter what - do not allow this conflict to take that away from you.
I do it all the time in all types of R's... Don't circle about what you think might be in H's head. It may not be the best - it may not be the worst either. You do not have to decide where H's head is today. 
