Buyer on Ebay will not return merchandise?

I recently sent xbox merchandise totalling 700$ to a buyer in California. He paid for the merchandise and the transaction went through flawlessly. A few days later, he wrote a bogus claim up and stated I shipped broken wi, ps2, and other crap games to him. I have not received my merchandise, and wish to go to court. What type of court should I file my claim in? I know small claims court is for state citizens, but is it for out of state as well?