My question involves small claims court in the state of: California.

I have dental lab (making crowns and porcelain teeth for dentist). Well I just had a fallout with a dentist we provided our services
to for more than 20 years. His wife "manager" called me one day and stated that she would deduct $400 on any remake. Which doesn't make
sense because we charge $60/case. We also have a no question policy where if they have a re-make we re-do it at our cost. At the end of
Feb. We had 2 re-make cases and they deducted $800 from their payment! Well we got pretty upset as you can imagine and we tried communicating
with the doctor that we will not be treated like children, but he's always "busy" and the only communication was with his crazy manager/wife
who wouldn't communicate but yell what's in her head and then hang up the phone. Well we had enough so we returned un-finished cases to them on
a Wednesday which were due on a Friday and let them know that we will no longer work for them due to the abuse. Yesterday, I got a letter from the
bank that they placed a hold on the check they sent us (in which the deducted $800 already). Well the amount of the check is a little less than
$3000 so I'm pretty upset.

* They reason why they placed a hold on the check was because they wern't able to find a dental lab to complete the cases by that Friday.


What should I do? sue? Collecting agency?

Or just let it go?

Thanks in advance guys!