It depends on what you want to achieve.
If the small claims court limit in your area is $3500, then that's all you'd be able to collect by pursuing your claim that way. Small claims court is typically easier/quicker than the general trial court and the papers and proceedings in small claims court tend to be designed in such a way that average people can adequately present their cases and defenses without needing to engage lawyers. You would, however, be giving up the ability to claim the other $400 that you are owed, and you might be giving up other claims or damages available to you.
Going to the general trial court might require a lawyer which, for a $3,900 claim, might not be cost-effective in that a substantial chunk of the recovery would be owed to the lawyer. However, you'd have access to all claims and damages to which you might be entitled.
Using either route, the best you end up with is a judgment, which must then be enforced against the other party and that, too, requires some investment of time, effort, and, perhaps, money.
It probably would be worthwhile to speak to a lawyer about possibly representing you so that you can get some specific advice on the pros and cons of the various options available to you. Depending on the particular facts and circumstances, it might be worthwhile to pursue the matter in regular court even with the additional costs.

