@jcboy,
Here's how I frame it in my mind (assuming the evidence is clear that it was their fault). Would you knowingly let someone steal money from your wallet?
If there is no chance it was your fault, I'd take the time and pursue it in small claims court. Then if they STILLL don't show up or pay up, I'd take the case to the media outlet ... TV stations often like to take this stuff on. No business, local or nationally-based, wants bad publicity in such a down economy such as this one.