Extension of leave to remain: previously on Tier 2

[tier2013]

Hi, I was on a tier 2 visa til early 2012. My employer decided to not extend my contract, and gave me a very short notice for the same. Therefore, I had to apply for an extension of my leave to remain under ?humanitarian grounds since I have been living with my family and working in the UK since early 2005. I made this application through an immigration lawyer. I have not had a decision of my application since I'd submitted it in February 2012. An acknowledgement has been received.
I had two questions:

1. Are there any precedents where an applicant's LTR has been extended based on humanitarian grounds? If so, what category of visa is issued?

2. I had made applications for myself, my wife and my child. Is it possible to cancel my wife and child's application so that I can get their passports back and send them back to their home country?

Thank you for any replies!