The OP has said nothing to indicated the VA wouldn't have personal jurisdiction. It is just as likely that the defendant hasn't resided in NJ long enough to establish residency. (?).
The "appropriate" Virginia court would have personal jurisdiction under Section 8.01-328.1(A)(1) of that state's long arm statute.
The question I raised is whether or not a small claims court is the appropriate venue to pursue a personal judgment against a nonresident defendant under the long arm statute. It wouldn't be in my state. As here the plaintiff would need to file a motion and affidavit for the issuance of an order for service out of state, etc., etc.- all of which is beyond the capacity of such a court
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However Z, with all due respect I'm at a loss to understand your objective in adding the following:
"It is just as likely that the defendant hasn't resided in NJ long enough to establish residency."
I can see no other meaning to it other than expressing the belief (mistaken in my opinion) that for purposes of a tribunal obtaining personal jurisdiction the "established residency" of a defendant prevails over the defendant's physical presence or whereabouts.
To me it suggests (wrongfully I believe) that absent an artificial statute such as the long arm statutes a state court can extend its jurisdiction beyond its borders provided the subject defendant was once a resident of the state and has yet to have established residency elsewhere.
Which is not to be taken to mean that I know what is meant by "establishing residency". Not in this context.