I think YOU should initiate the small claims case, he likely won't since he
knows he is in the wrong. he ma may destroy your credit if he turns you over
to collections. I bet once you have him served with the court papers he will
change his tune. I would also jack up prices as high as possible on
everything since he was such a prick on the phone. the publicity on his
business will be devastating if he doesn't settle quickly.

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Be cool,
Longshot