Security Deposit being Stolen

We moved out of our flat 3 weeks ago and have been anxiously awaiting the return of our security deposit. The landlord emailed us yesterday saying that he was deducting $20 000 of the $54 000 deposit as he had to repair the drilled holes we had left from hanging a few paintings (normal wear and tear small drilled holes). He actually had the nerve to attach a "quote" in Chinese that claimed a $30 000 charge and claimed that he usually spent about $10 000 to repaint anyway so he would 'only' charge us $20 000. I've had repair work like this done in Hong Kong and know that it only costs a couple hundred dollars. Question is: Do I pretend it's all good and get the remaining deposit back and then take action (small claims court I guess?) OR do I immediately voice my opposition. I'm scared that if I say something right away he will decide to withhold more and we do need the remaining $34 000. PLEASE HELP!!!