What does “in that case” mean?

if that happens or has happened; if that is the situation

How is “in that case” used?

In The Letter (1940), one line is: “"Well, in that case," I said, "I can only think you half-witted."”

The clip at the top of this page is from The Letter (1940).

"Well, in that case," I said, "I can only think you half-witted."

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