Like I said, state your intentions to him and then follow through with it. Going to small claims court isn't a joke. If you are awarded judgment he will pay one way or the other. I'm betting once he is served it will never get to court. People like this make a lot of noise it seems but don't have the stones to back it up. It has went this far because you let it. Unfortunately people like this get over confident until you stand them up. I have had to do this in the past and will do it again if someone pushed me to "the final straw".