I think the risk to Coinbase loosing a case when they took $1000 is more reputational than anything. If they were to lose this type of case, they would have trouble attracting and retaining customers.
I think simply we fundamentally disagree on this point, which we have discussed before:
https://bitcointalksearch.org/topic/m.60068274I will write this without reading the post in question because I think it is unnecessary to read it in order to make this point, although I will append my post if I am wrong....
I think we disagree on many issues, but I always find your arguments to be articulate and well reasoned. Further, I find your arguments to be made in good faith, which is not something I can say about everyone on the forum. I have found that you are capable of engaging in debate with those who disagree with you. As a result of the above, I often respond to your posts. I hope that neither you, nor anyone else views my responses as any kind of flame war, or anything like that.
Coinbase have done plenty of suspect, shady, and downright illegal things in the past, and yet continue to have no problem attracting and retaining customers. Everything from selling user data to insider trading, hiring human rights abusers to seizing customers' coins, attacking bitcoin itself to creating their own blockchain analysis subsidiary. The loss of a court case would add very little to that rap sheet, especially not a court case for only $1000. Most users simply wouldn't care.
I think a lot of what you describe are failures to implement procedures/policies properly, to have proper controls, etc. I think if Coinbase had a procedure to intentionally confiscate property in small amounts for reasons they knew were invalid, they would have difficulty retaining customers.
I know you disagree with my conclusion, but I believe the reason there are no court cases whose resolution is to provide their customer with access to their funds that were frozen is because coinbase is not denying access to funds by their customers for reasons that are not consistent with the law. I think if this was not the case, there would be at least a handful of cases in which a competent lawyer would take the case on a pro-bono basis.