If your contractor walks out, move your project along: Get it finished and don't rely on suing to recover your cash. That's the reality-check advice onBrownstoner.com.
"You are wasting your time thinking that you can get $100,000 in damages..it will be reduced to $3500 by a decent lawyer," says one commenter. Moreover, adds another, "The GC may not have any assets to compensate you with even if you won."
Still, you should probably check with a lawyer about whether you lose a anything by not pursuing the miscreant contractor now. If the decision to sue or not can wait, document everything and then focus on completing the work.
One thing a lawsuit can do (if you decide the effort is worth the expense) is to "get a court to solidify what damages above the amount of the contract are owed to you"--what it cost to fix the mess, in other words. You may then be able to write it off.
Brick Underground articles occasionally include the expertise of, or information about, advertising partners when relevant to the story. We will never promote an advertiser's product without making the relationship clear to our readers.