Breach of Service Agreement

I recently hired a service provider to work on my project. All project negotiation was done through email and I've made 50% deposit as he requested in order for him to start.

Last Sunday(09/18) he sent me following message:
"I am tired of this unending argument. I don't think this kind of working relationship can last. Perhaps we better cancel the order. Let me know and I will have your money refunded."

I told him that I'll respect his decision and asked him to start initiate the refund. However, he changed his mind and start arguing that was only a suggestion. However, I do not think so.

Do I have a case against him for breach of service agreement?
Am I entitle a full refund and financial compensation for my time spent in finding his replacement and interruption to my project?
My service provider resides in British Columbia, Canada. Can I file my case with a US court?

HE made the OFFER (Not suggestion) and said "Let me know". You let him know you agreed and wanted the refund.

He owes you a refund--but you would have to go to Canada to sue him.