The tenant is threatening small claims court unless the full deposit is returned minus the damage.

She's threatening to take us to small claims court to get all of her deposit back. 

What you are trying to do is get the landlords to get a whiff of the potential for a lawsuit without actually threatening to sue.  

@Taz Patel I'm not a lawyer or insurance agent, but I am 98% sure there isn't any insurance that will help when a tenant sues or threatens to do so.

(This one is especially good for tenants who are hinting or threatening about taking you to court.)In fact, here's that website:http://www.dca.ca.gov/publications/landlordbook/pr...It's awfully nice of you to manage your Mom's property.  

Wife threaten to sue me for "Elderly Abuse".   

They refused to pay for the replacement so I intend to deduct it from their deposit.One month in the tenancy another tenant called me to inform me that four people barged in the drug dealer's unit and one of them threatened to shoot him.

There is probably a charity that would even help him pay it, but he has to pay it.If his voucher gets threatened, he may get it taken care of right away.  

There are plenty of amenities (library, grocery, parks, etc) within a short drive or walk.My problem is the city is now threatening fines.

It's only harassment if done repeatedly and in a manner that's considered disturbing and/or threatening.