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Where are you located and where are they located ?
As for small claims - if your attorney is telling you thats your only recourse then I suggest another attorney. There are several claims here beyond just breach of contract, but that depends on where you/them are located.
I suggest a C&D on the publisher from a lawyer followed by the phone call. If the complaint has to be filed, let them know before hand that you will not settle without attorney's fees being paid.
If you waited this long have some fun with it. You are in the driver's seat.
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