You sound like a loving, giving, open person V and believe/expect/hope that those you care for are the same. I had to learn the lessons the hard way too. Now I quilt or sew or whatever because I like and need to do it for myself. If I give something I've made away, I give it with no emotional strings or expectations attached. Auction for a cause, charity quilts or just because it brings a glow of joy to some person's face is a better reason for me.
Stand back, take a deep breath and remind yourself that they are the losers, you are not and take the jerk who didn't pay you to small claims court.
Diana