> "(and doesn't disclose information you deemed confidential)"
Is not some minor detail. You can have a certain level of confidence that your contractor won't release confidential information because they would be subject to civil (maybe criminal) legal action.
When your contractor turns around and subs out that work to someone in another country, that threat of legal action loses quite a bit of its' bite. Sure, you could maybe still prosecute/sue your direct contractor, but you still have no real control over the outsource subcontractor.
In either scenario, the purpose of the legal action isn't for you to recoup your losses -- you probably won't. The threat of legal action is what's supposed to stop these losses from happening in the first place.