Got an email, said they would only pay 50% of the clothing that I bought while I didn't have my bags, unless I sent all of that clothing to them.

How would I do that? The cost to send the clothing would probably costs as much or more, if I had to send it to Germany.

Same policy for toiletries.

They also cited some limit of 1288 (not sure which currency) under the Montreal Convention.

So I replied back by email, asked for 50% of the clothing cost.