What I heard from another entrepreneur in this space (there are several competitors) is that small claims court is effectively not legally binding in most jurisdictions, because very few judges are going to issue a bench warrant or seize your house even if you blatantly don't pay the judgment against you. So even if there is a contract here, it doesn't seem like this would be any different unless there is enough money at stake that it's ultimately no longer under the small claims umbrella if the contract gets violated.
/Not a lawyer