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Domain Sold to Recover Damages

         

pfunk

11:25 am on Oct 3, 2005 (gmt 0)



I worked as a contractor for a few years and the company that i worked for decided not to make good on our agreement. We had started a major project that was to keep me emploted until dec of 2005. In Jul they decided they would pay me when they so pleased, so on the 25th day of July when the payment was 25 days late, I put there domain in my name as security for payment. They paid me for that invoice but afterwards they decided they did not want to complete the project. They agree'd to a 3 month notice before ending anything with me in exchange i would drop all other clients and be 100% dedicated to their needs. They did not give me 3 months, nor did they complete the project they had me start. This was not due to anything i had not fullfilled. I completed everything they had asked up until they were to make some changes to the format and give me the word to proceed.

So i kept the domain. A company X I talked to afterwards has a pending lawsuit with them over movie rights. The company Z had also agree'd to something they did not fullfill with this production company X. Having the domain name in my name, i contacted company X to sell the domain to them for the movie so that i can recover my losses being that they owed me for 3 months of service. Not to mention they recieved a discount for garunteed hours [per month and when they backed out on the deal, they no longer were eligible for the discount. So on every invoice, 3 total i included the rate without discount and the rate they got because of the garunteed hours program signed up for. I added them up and said if they just paid that amount I would settle to avoid any legal battles which i was prepared for. Company Z, denied all charges and left it at that.

So in my terms and conditions i state that i can use any means possible to recover losses in the case of them breaching the agreement. Well even though i had their AMX # which i could have charged the full amount to, i decided to give them more chances to settle. They ignored my requests. So i sold their domain for an amount that exceeded $5,000, but was not over $10,000. This probably exceeds the amount they owed me but in the contract for sale the amount is not disclosed, and even if it does exceed the amount company Z owes me its not by much.

So, after all being said they, company Z is about to find out, and i fear them suing me for that sale of the domain to company X. Company Z will most likely claim i was not the legal owner of that domain. The domain was in my name prior to Jul 25th. And was put in my name because of there breach of our agreement. Which was documented also with emails and recorded phone calls.
IS this going to be messy? I'm willing to hire an attorney to win this and then recover any more damages they inflict on me.
Or just save my butt from having to pay any compensation to this company. Which route am i looking at here? Company X has the domain in their name now. And i have recieved payment. I no longer do work for company Z, and will most likely be working for company X on the movie.

Info: the company Z has trademarked the name only with an Inc. at the end. And the domain name does not have the inc. Other than that the name is pretty generic.
Thanks
Al W

Webwork

2:23 pm on Oct 3, 2005 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Webmasters are not lawyers, nor are they schooled in the law, so you're not really asking this community to guide you legally are you?

If you're asking "Is is worth it to go through all this expense and aggravation and risk?" that's the type of answer that isn't known in many cases until the end of the case or dispute.

If you read the Domain Forum'sCharter [webmasterworld.com] you will see that it's against policy to provide specific legal guidance. We discuss legal issues only in the most general terms. Please read the Charter now so you understand the limitations placed upon responding to your questions as they are now framed.

Bottom line: With issues such as yours the only practical move is to consult with a lawyer. Even if you can't afford to retain a lawyer to fight the issues at least you should get proper legal advice.

pfunk

6:48 pm on Oct 3, 2005 (gmt 0)



ok im sorry. I assumed this was a common issue with webmasters and was only looking for someone that had been through the same thing. I have been contacting attornys and working them for info for a week now and its helped some. But to talk to someone that has been through this would be priceless.

The sale: I had to do this. This company is known for screwing people around (i found out later) and im too small to take a hit like that. If i dont do this, we dont eat. And eventualy im sure we will lose our house also.. Late fees and back rent / bills will take the $ no doubt, but whats important is it buys me time to move on to bigger and better things. Without the compensation, my business will not survive. And ive enjoyed doing this and have done too well to let this go now.

So there is no if, its when and how. And how would be learned from someone that has enough empathy to share an experience with me, that could enlighten my situation. I did read charter too, and that is why i left names and domains out.

<snip><Your upset is understandable. So are our rules. Let's leave it at that.>

[edited by: Webwork at 12:01 am (utc) on Oct. 4, 2005]

pfunk

7:05 pm on Oct 3, 2005 (gmt 0)



Oh and by the way, i do have an attorny. The Company buying it has provided me with one. I need some more information though, so i can be 100% prepared and know they are being up front with me. They are a major production agency and they agreed to provide me with the legal service. See the conflict of interest?

davezan

10:30 pm on Oct 3, 2005 (gmt 0)

10+ Year Member



Let's put it this way, pfunk: what you've described, however "common", is still handled on a
case-to-case basis. It depends on all the facts and details gathered in the course of things.

I'll tell you this much after reading your story, though: there are unfair people out there who
may feel they have the law on their side. If that happens, you best be prepared.

webdoctor

10:54 pm on Oct 3, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Bottom line: With issues such as yours the only practical move is to consult with a lawyer. Even if you can't afford to retain a lawyer to fight the issues at least you should get proper legal advice.

<sarcasm> Instead of worrying about what might happen if you sell "their" domain name, why not just pop round at night with a truck and help yourself to some of their inventory... if they owe you money then I'm sure the judge will understand it's not really theft...
</sarcasm>

Good luck, anyway :-)

AlexMiles

11:40 pm on Oct 3, 2005 (gmt 0)



Everyone always says 'consult a lawyer'. Like its some kind of mantra that wards off all evil. I reckon its more likely to bring a ton of it down your head. I had a conversation with a lawyer that broadly speaking went like this..

"Is there any chance the other party could win this?"

"No."

"Good. Well quit corresponding with them then."

Six months later..

"Heres your bill for the last six months of letters we sent on your behalf."

"Hahahahaha."

I never initiate legal action unless its something obvious like a lack of maintenance causing an accident and I've been badly injured. Certainly I wouldn't while I'm ahead on the deal, because its the fastest way to end up behind. If there is any potential legal hassle, I'd let the guilty party initiate it on their dime. I mean you recouped your losses, what do you have to gain?

Hm. If you want to show good faith though, you best offer them any amount you made over and above what they owed you.

sandyeggo

11:43 pm on Oct 3, 2005 (gmt 0)

10+ Year Member



I seriously doubt that you will win if ever brought to court, even if they NEVER pay you for your services. Your agreement with the company more than likely did not include you owning their domain name. It would have been in your name from the start.

If you have a key to someone elses house it does not mean you can move in to it or sell it whenever you want to.

Good luck. If they get a good lawyer, and they can afford a better lawyer than you ;-) then they might also seek criminal charges against you.

<disclaimer> This is not legal advice - only an opinion </disclaimer>

AlexMiles

1:14 am on Oct 4, 2005 (gmt 0)



>Company Z will most likely claim i was not the legal owner of that domain.

Reading between the lines here - neither were they. :)

Its entirely possible the rightful owners of the domain are now in possession of it.

pfunk

9:20 pm on Oct 4, 2005 (gmt 0)



Thx to those with advise. Yes they can afford very good lawyers. I know about 3 or 4 others suing them so i think we may try and join up. And without $ no lawyer is going to give 2 berrys about my best interests here. My problem with them is hey are in it for themselves whether you have the $ or not.

And to the one saying "why not take there inventory too." yea, ill get right on that, ever heard of a lein? Stealing products from their warehouse and holding a lein on something are not the same thing.
Should we not have the right to protect ourselves and our familys who suffer through this also? Specialy when i have given them multiple chances to settle this, and they chose this route. They will pay triple fold to me and they will not see that url again. The scumbag that ownes this operation will wish he had settled then.

It's too bad, i guess i'll have to pay, and they'll have to pay. I guess pulling the pin handcuffed was the only way here.

pfunk

4:44 am on Oct 5, 2005 (gmt 0)



well it hit the fan. As it turns out i was the legal owner and by not paying me they turned over the rights to the domain to me as compensation for my losses. This was in my terms and conditions. Not that im safe, but it looks as if i'll be clear of any theft.

Protect yourself people. This happens a lot and some will make you feel like you cannot defend yourself. Sarcastic people stating i should pop around at night and take there inventory probably think the employees at Enron deserved what they got.

Dont allow big busines to push you around. Always keep your eyes open for ways to gain leverage if they decided to try and take advantage of you. I'm not saying rob them but secure your investement as they have theirs. And if all goes well everyone is happy. But if they stiff you then you are able to recover your losses at there expense.
The domain laws are against our consituational rights. The laws are setup so that big business gets what they want and we get the shaft.
<snip>
PFUNK

[edited by: Webwork at 5:44 am (utc) on Oct. 5, 2005]

AlexMiles

12:12 pm on Oct 5, 2005 (gmt 0)



Pfunk, I'm so pleased this is working out for you. If you are able to join in action against the villans it should be more efficient. Even if they want to, they are going to be far too busy to come after you. By handing the domain to the company you did, I think you might well have prevented a nasty expensive trademark issue too. Whether that turns out to be the case or not, if you are in trouble, argue it. :)

And, congratulations of taking on these scammers and winning. Often people take a superficial look at a situation like this and assume the truth must lie in the middle and both parties are equally guilty. Thats a cop out of course. Saves thinking by people who have trouble thinking and wouldn't contemplate acting.

So many times the hard work that went into beating a scammer is actually held against you by the people who should be grateful. One of the people who attacked you over the stand you took might have been their next victim. They *never* think of that.

Essex_boy

1:47 pm on Oct 5, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Well done Pfunk on having tightly written terms and conditions a lesson for us all.

I agree there are some on here that take a high and mighty view of your actions and indeed mine, but why should we be expolited and pushed with the perps having no fear of a comeback?

Kind of sickening.

gamb

5:59 pm on Oct 5, 2005 (gmt 0)

10+ Year Member



how did you possibly have legal ownership of the domain?

Until I read that, I was about to write that what you did was no different than making a copy of the keys to the company car, and then selling it for $7,000....

AlexMiles

7:35 pm on Oct 5, 2005 (gmt 0)



Its called 'self help'. The distinction between that and 'helping yourself' is a fine, but valid one.

Basically, when you are wronged, you do have a right to sort it out yourself if you can. Even when there is the option of going to law to sort it out theres no obligation to do so. The difference between self help and stealing is that with self help they stole from you first.

If you'd just decided to help yourself to someone elses domain when they hadn't ripped you off, that would be stealing.

Think of it as a financial version of self defence.

gamb

11:05 pm on Oct 5, 2005 (gmt 0)

10+ Year Member



Self help? Sounds more like self rule to me. And although I'm all for punishing the bad guys, I'm certainly glad not too many people subscribe to your "self help" theory.

Next time your phone bill is late a few months I hope someone from the phone company steals your car stereo...

davezan

11:06 pm on Oct 5, 2005 (gmt 0)

10+ Year Member



Think of it as a financial version of self defence.

My thoughts, exactly. What set pfunk apart from other disputes I've encountered is s/he took
precautions in case a dispute arises.

FYI, registrars treat whoever is listed as the registrant owner as the legal owner, no ifs ands
or buts. They don't care what went on behind the scenes until they receive a notice of transfer
from a Court or an arbitration panel.

Domain name ownership has always been questioned and will continue to be so. Whoever shall
be deemed the "rightful owner" will depend on the facts gathered during its course.

The laws are setup so that big business gets what they want and we get the shaft.

Not every big business is able to legally get what they want, including domain names.

gamb

1:50 pm on Oct 6, 2005 (gmt 0)

10+ Year Member



would you guys feel the exact same way if he had surreptitiously changed the registration on the company car because he was afraid of not getting paid, and then sold it when he was owed money?

Don't get me wrong, I've been in the situation where I've been owed money and it sucks, I just don't think that doing something behind the back of the company you are doing work for and then selling off their assets is the best way to handle something like this.

davezan

10:37 pm on Oct 6, 2005 (gmt 0)

10+ Year Member



I just don't think that doing something behind the back of the company you are doing work for and then selling off their assets is the best way to handle something like this.

Their assets?

Ain't domain names so darn unique? Their ownership is subject to question and dispute.

Who's to authoritatively say who "rightly" owns the domain? (if you know what I mean...)

gamb

10:51 pm on Oct 6, 2005 (gmt 0)

10+ Year Member



Yes Dave, their assets - although perhaps you agree with pfunk that

"The domain laws are against our consituational rights. The laws are setup so that big business gets what they want and we get the shaft."

yup, all of those domain laws out there trampling on my constitutional rights...

AlexMiles

11:35 pm on Oct 6, 2005 (gmt 0)



Gamb,

>I'm certainly glad not too many people subscribe to your "self help" theory.

They don't seem to, do they? :)

Luckily most of the ones who do are judges. Its a fundamental principle of any legal system based on Roman law, (which would include the US and UK) although it hasn't always been looked on kindly. For more info see Violence in the Roman Republic. by AW Lintott (O.U.P. 1968).

gmac17

3:49 am on Oct 7, 2005 (gmt 0)

10+ Year Member



you can't just take property from someone else because they owe you money. I have a feeling pfunk will find this out himself soon enough.