Forget all the [censored] about suing for pain and suffering and for your legal fees. It ain't gonna happen. In most states, pain and suffering is NEVER awarded in a breach of contract case. Unless you live in Engalnd, in almost every case, each litigant pays his or her own attorney, except when there is a contractual clause that provides otherwise. If you had paid an attorney $500 or so to draft a contract beforehand, you'd be in a lot better shape now.
I'd say you have two choices. (1) Pony up the money and hire a lawyer to go after the guy; or (2) Save yourself the expense of hiring a lawyer; complain to anyone who will listen and seek free legal advice on the internet from well-meaning car nuts who know very little about the law.
Your situation reminds me of that of a friend of mine. His transmission went. He needs his car, knows very little about transmissions, but does not want to pay a mechanic.