I'm young and often hotheaded and probably not the best person to go for advice but personally I would say if you are so passionate about the matter, to see it through to the end. Other than the fact that your neighbor owes you compensation in the LEAST, even if your T was right and you would have been better off not pursuing it through, if I were you I would keep boiling and festering about the matter for years and years afterwards. Whereas if I did what I wanted to do (which is see the matter to the end), then even if I end up regretting my decision, at least it was my decision and I wouldn't be stuck wishing I had done what I wanted to do.
That said, I would say do take others advice into consideration, write down rationally the pros and cons of each situation (financial gains/losses, justice/precedent, etc) and weigh everything together. In the end I think it is your decision but you should make it in a calm rational state. Best of luck to you