I sold an audio interface on ebay 2 months ago (I usually resell audio gear) - to a buyer located in Ca, about 300 miles away. The product I sold was brand new, still sealed in packaging - when the buyer received it, he noticed that the volume knob was broken (it would just spin continuously) When he contacted me about this, I asked him if the shipping box was damaged or anything else was noticeable - he replied that everything was perfect, it was just the volume knob - which implied a manufacturer defect. I asked him to return it back to me so I could either refund his payment or ship him another unit. He went to the UPS store and shipped it back to me - when I received it, the shipping box was damaged (he used the same shipping box that I had shipped the unit in) I opened up the box, and the audio interface was crushed - clearly I could not return this to the studio I got it from.. it was crushed beyond repair. I contacted the buyer and mentioned this - he said he had purchased UPS insurance. So, I told him that I would ship the damaged unit back to him - that he could take it to the UPS store and file a claim and went ahead and shipped the item. After he received the item, he got hostile and started blaming me for selling a 'refurb' and going crazy . Finally, he filed a PayPal dispute and as we all know .. paypal doesn't really read the details - as long as the buyer shipped it back to me, paypal is satisfied and issued him a full refund. I bet he also filed a claim and collected his insurance money (he filed the paypal claim a good 10 days after he received the crushed unit .. so he could have gone to ups with the unit in that period for his insurance money) Now I am stuck with a useless product which cannot be returned.. and I am out of my money. Do I have a valid claim to file a case in small claims court? I have pictures of the unit, the shipping box, all the emails, etc. What do you guys think?