I do not know if this is the exact cause, but this is what I found from my research. So this might not be the cause, it might be. I'd talk it over with my vet for sure.
Legg-Perthes Disease is very common in Jack Russell Terriers, like many other small breeds of dogs. It is possible that your little doggie has this as well. This effects the hip joint, but it could be what is causing that paw to extend out the wrong way.
This is a deformity that causes an abnormality of the ball of the hip joint. It can cut of the blood supply and the bone will start to deteriorate. Arthritis and pain can develop as well.
This is said to be either genetics but it is not 100% confirmed. It can be treated with surgery, but like any operation, I can imagine it is costly. You should discuss this with a veterinarian and help your dog if he starts worsening or shows sign of pain.
Based on that, How to Choose a Dog Breed|purebred breeders should take effort to screen for the disease. For future adoptions I would try for a puppy that comes from parents who are at least 2 to 3 years old and do not show any problems, defects or diseases. Many will show up by that time.
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