I think you could say that the act occurred in Kansas (though there is an argument to be made that the contract was formed in NC as well). Probably either place would be fine.
I would sue him in Kansas small claims court. It is an easy process... go to your county courthouse, and ask for a small claims form. Fill it out, pay the fee (usually less than $100) and file it. They will take care of the service as part of the filing fee in most places.
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