Paid contractor more than he finished before going to JAIL....?

[Michael Wagner]

Paid contractor a total of $4400 out of $6600 total job cost (partial basement finishing).  He did some basic framing, hung drywall (not well). He was supposed to also finish all mudding, hang two doors and install drop ceiling but he stopped showing up. Was dodging calls for a bit then would promise to be there tomorrow...blah blah. Then I found out he is in jail for violating a restraining order. He was paid roughly $2000 more than he accomplished. Signed contract as well as third party estimates to finish project along with pictures of his work back this up.  The only upside is that he left all his tools.  I've since put tools in storage to make room so someone can get in and finish the job.  Can i hold tools ransom?  My plan is to trade tools for a fair refund or hold them until we get in front of a small claims court...?  Any advice or tips would be very much appreciated.  Thanks.