Company Took UPS Claim Payout After My iPhone Was Lost Refuses to Pay Me. Can I Sue?

I’m in Connecticut. I traded in my iPhone 15 Pro Max to BackMarket.com. They sent me a prepaid UPS label and told me to ship it using their instructions. I handed it to a UPS driver.

The package arrived damaged and empty. UPS paid the claim to Back Market, but they have refused to compensate me at all. I’ve contacted UPS, gathered documentation, and confirmed the payout was made. Back Market then disabled my account entirely.

They got paid. I got nothing.

Can I take them to small claims court in Connecticut, even though they’re based in California? Is there anything else I can do to report this?

Location: Connecticut .