1. State and Federal Courts
State Court
Federal courts will take cases involving federal question and diversity of citizenship cases. State courts have jurisdiction to hear all other cases Diversity of citizenship are between citizens of different states, citizen of a state and citizen of a foreign country, or a citizen of a state against a foreign country. (Cheeseman, 2007).

2. Alternate Dispute Resolution
Cost less than courts
More relaxed rules
Takes less time
Private
An ADR or Alternate Dispute Resolution might be a good choice here. Arbitration would be much less costly with more relaxed rules and take less time than if heard in a traditional court setting. Mr. Jones could save money by bringing a faster resolution to this issue. Instead of having to go through what could possibly be months of litigation and possibly a public embarrassment, ADR looks like it have all the advantages for Mr. Jones.

3. Reference
Cheeseman, H. (2007). The Legal Environment of Business and Online Commerce: Business Ethics, E-Commerce, Regulatory, and International Issues. Prentice Hall, Inc.

4. Who has jurisdiction? State Jurisdiction: Federal Jurisdiction:
Trespassing and Property damage
Fraud: Civil and Criminal act
municipal/zoning ordinance
Federal Jurisdiction:
If this is being the case. Diversity of citizenship “would fall into federal jurisdiction if both these requirements are met: the plaintiff and defendant are not residents of the same state or if the case is a claim for money damages, the damages claim must exceed $75,000”
Mr. Jones can be in both State and Federal Jurisdiction if enough evidence is brought up. However, Mr Jones will be in the States Jurisdiction, depending on how much information is gathered about the plaintiff and his citizenship, this can also end up in Federal jurisdiction.
Kerley, Peggy N., Hames, Joanne B., & Sukys, Paul. (2008). Civil Litigation. Available from