Personal jurisdiction Personal jurisdiction would determine whether or not a particular state court could hear the case. This is determined at a base level, by whether the defendant had some minimum contact with the state in question. Most often, several courts have competent jurisdiction, and you have the option to file it in your state or the defendant's state.
Subject matter jurisdiction This jurisdiction decides whether you should bring the case to a state or federal court.
If the cause action for the case concerns federal law then the action must be brought to the federal court. Cases like discrimination claims could be brought either under state or federal claw, so you have the choice to select among the state and federal courts.
A lawsuit could also be brought to the federal court if the parties involved are from different states- called as diversity of citizenship and the claim is for more than $75,000.
In your case I see more fraud, then refusal to deliver. I recommend that You contact the State police where the individual lives, and file a report. Second contact the secret service and file a report with them as well, because of the fact that this transaction took place over the internet, they will usually respond quickly.
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