According to my neighbor, who is a lawyer and likes to drink, this is pretty common. He is on a lot of cases where the lawsuit makes him (the lawyer) more money than either party would have saved or lost had they just settled up front.

The one I remember had to do w/ $1900 worth of lost wedding photos cuz a server died or got deleted. Cost more to twist the knife in court than to just settle.

Probably depends on your local jurisdiction... I am not a lawyer but my own experiences tell me that any kind of civil case below about $50K, the courts would really you rather not bother them with this, and you are going to spend at least 20% of that and several years before you may or may not see a dime.