Per the subject, I now have a tenant in New Orleans who has threatened to sue me in Small Claims Court for withholding his security deposit of $1200. I'm ready to grit my teeth and ride this out betting that the tenant will drop it, OR that the claim will not move forward because he will not be able to "serve" me (I live in Portugal). 

I'm a landlord dealing with a former tenant who violated the lease (unauthorized pets, gave only 6 days notice instead of required 30 days) and left property damage exceeding the $1,300 security deposit—total repairs are over $2,400.

Initially, we asked the tenant to wait while we completed repairs and calculated costs. The tenant became hostile, threatened our property manager, and threatened to sue (August). We then sent a registered letter (September) detailing the lease violations, itemized damages, and offered $100 to settle. The letter noted that if they pursued legal action, we'd counterclaim for full damages plus compensatory costs since we live overseas and would incur significant travel expenses for court.

The tenant replied they'll sue in small claims court anyway, citing Louisiana tenant rights. We haven't responded yet.

And before anyone asks: There are VERY clear lease terms around the security deposit, ex: "In the event of forfeiture of the security deposit due to Lessee's failure to fully and faithfully perform all of the terms and conditions of this lease, Lessor retains all of his other rights and remedies" ; "Deductions will be made from the security deposit to reimburse Lessor for the cost of repairing any damage to the premises or equipment or the cost of replacing any of the articles or equipment that may be damaged beyond repair, lost or missing at the termination of this lease"; and "Not withstanding any other provisions expressed or implied herein, it is specifically understood and agreed that the entire security deposit aforesaid shall be automatically forfeited should Lessee vacat or abandon premises before the expiration of this lease"

What are our options here?

As a landlord, am I justified in withholding the security deposit, or is there a risk that I go to court and lose? This seems to be pretty clear cut to me, but I'm still a little nervous as it's the first time this is happening. 

Advice? Should I hold on tight and wait it out, or should I retain an attorney ASAP?