OT: First bad eBay seller experience, Item destroyed, won't refund. Options

[Brando]

Firstly, (IMG:http://www.914world.com/bbs2/html/emoticons/mad.gif)

In the second week of December I purchased a monitor on evilBay for a customer, $25 + s/h sounded fair, it was the same monitor she had before. A few days go by after the auction ends, I won, paid within an hour after auction end. Total was $88 and change with $60+ shipping. Ouch. A week goes by and no word on a tracking number. I requested insurance (semi-valuable and very fragile item) so if it was lost he could be reimbursed. A week and a half goes by, I email and ask what the delay is. He says held at the post office for more money. Okay, never heard of that one before...

another week and a half goes by, I get a tag on my door from USPS: Attempted to deliver, requires signature. I go and pick it up from the post office, only to find that the exterior plastic and circuit boards are all completely thrashed. The seller's idea of packing was ... get this... A small thin sheet of bubble wrap on the back of the monitor and a wadded up towel over the screen. Nay! Says I, I shan't accept. Send it back! Postmaster snaps a picture for me and I e-mail the guy telling him I want a full refund and that the monitor is en route. He says no way, I'll get a refund when he gets the insurance money. I'm needing the cash from this monitor as of three weeks ago, since it is useless to me broken. Not only that, it was for a customer! Which means I don't get paid for it until it's delivered and setup.

My question is... Am I screwed here? I paid through paypal (only method the seller accepted) and it was an electronic funds transfer - not on my credit card.

I asked for the guy's daytime phone number. I also have to scan the phot the post office gave me. It only seems right to me to refund my money. It is what I would do if I sold an item to someone and it was destroyed in transit. Refund the buyer now, collect the insurance later. Not make the buyer wait on the insurance check...