Give tenant their deposit back to avoid conflict?

[Tandi H.]

In an earlier thread, I described my concerns about getting out a problem tenant.  They actually did move out on time yesterday, thats the good news.  Bad news is that in the process they removed/threw away all the drawers in the kitchen and bathroom cabinets.  Also did not clean and it will need serious cleaning.  Turned hot water all the way up and left washer connection leaking.  I will need to replace cabinets or get drawers custom made, and have space professionally cleaned.  I think the water didn't cause any serious damage. 

Tenant works at a law office in some sort of admin position.  They have threatened me with legal action throughout their move out month over various perceived issues.  I would imagine they can get free legal advice from work.  

Their deposit was $700.  Just give it back and be done with them?  Or deduct for cleaning, drawers, and potentially go to court?  Rationally I'm leaning towards giving it back to them just to get them out of my life.  Emotionally it's hard to let them "win" - though of course I've won by being rid of them!  Thoughts?