Long legal story short: the next paperwork you need to be filling out would be the closing papers on a new home.
Sure you have damages, and he probably did something illegal, that's not my specialty. What IS my specialty is favorable outcomes to these conflicts. You'll save yourself THOUSANDS if you simply move. Take a loss on the house if you must, but realize that you're still saving thousands in legal fees.
Sorry your neighbor is an a$$hole but the way things work, you won't come out ahead financially with any outcome. Sorry.
I'd tell you this if you came to my office as well, I'd simply refuse the case and wish you the best in finding a new home. Sorry.
We are the middle children of history, man. No purpose or place. We have no great war, no Great Depression. Our great war is a spiritual war. Our Great Depression...is our lives. We've all been raised on television to believe that one day we'd all be millionaires and movie gods and rock stars, but we won't...And we're slowly learning that fact. And we're very...very...pissed off.