Extortion in small claims?

Our lawyer said that it isn't extortion if the actions are just in small claims. I was wondering if there's a lesser version of "extortion" that could apply, or if the lawyer is just blowing smoke at us?

Extortion is just a term used to describe unlawfully obtaining something through the use of force or coercion and is generally considered to be a criminal offense.
If you are seeking to file a claim at the Small Claims Court, you are simply required to state the reasons for bringing the claim. The merits of the claim will be assessed by the Court based on the evidence provided. Whether the facts of the case are based on extortion/breach of contract/fraud, it is the merits of the claim that will dictate whether you will be successful.
I would recommend searching for the Small Claims Court in the county/State where the Defendant resides or conducts business, and read the information on how to file a claim. There is a lot of helpful advice provided by the local courts.