It was dealt with through the local civil court, small claims in NSW. They instigated it, so I had to go with that. It was for $8,000.

The excessive amount I had to pay was for my solicitor. They had one, so there was no way I was going to represent myself. I did the first 2 court visits when I had to go to Sydney and I was way out of my depth. I speak medical, not legal, and as there was a lot of money at stake (by my standards), I wasn't taking the risk of losing when I knew I'd done nothing wrong. When I successfully got it transferred to my local court, I employed a solicitor. 

As I said, the PayPal thing confused me too because they hadn't paid that way. I don't know why they would have allowed that, but I just checked my paperwork and it was printed out from PayPal. Has got me beat!