For me its become fairly easy to decide if its worth the time and effort that is involved in "taking down" a shady contractor or title company or seller.

The reality is that I have been "taken" a few times in my day, and all of them taught me to never be taken like that again.

My contracts are TIGHT but not too wordy, my payouts are only upon completion (I provide materials to ensure I get what I am supposed to get) and I try really hard to always work out issues and be fair/understanding.

I do have the advantage that I no longer have to worry about if a trade or title company knows what they are doing (a couple of easy questions figures that out) but I now worry about IF they will complete the project

Bottom line is easy- I don't let myself get upside down and I NEVER go after people for emotion. I do the math, I calculate the time, and I decide if the ones I want to go after will ever have to pay (*most times they don't have money to pay you if its a trade)

So, I protect myself and my trades / clients / and others from not only "others" but from themselves. MANY issues have come up purely out of ignorance and not malice. Although the results are the same to my bottom line, what really matters if they will learn from a mistake or if they will try to profit from my willingness to work it out.

Finally, 10k is what you can go after in small claims. It also doesn't stop you from suing for other damages separately. A 10k judgment you will never get paid on is just as valuable as a 30k judgment you will never get paid on.
*there are ways to get trades / contractors tossed into jail for fraud if they are flat out thieves or refuse to complete the project correctly or at all and have been paid. But thats another post.