domain and website problem

[bubster]

Hi I have recently taken on a new client for website design and registered the domain in my web design company name. I did this as we have had a lot of problems with domain hijacking and wanted to protect the interests of the client.

I have developed the site and launched it for the client but they haven't paid fully for extra updates.

In accordance with our contract I terminated hosting and emails and told the client until payment is made the site remains down.

Obviously the client is losing business and I feel they may persue my company for damages.

As the domain is registerd in our name they cannot tranfer to another hosting company.

Could registering the domain in our name cause legal problems for us. I have no problem releasing the domain back to the client but as I say a debt remains unpaid. The client has yet to request back the domain but I feel they are stalling this to make a greater claim for lost business.

I want this client off our servers and no longer wish to do business with them.

Any help or advice on the best way handle this case would be much appreciated.

[jatar_k]

the best advice is really to consult your lawyer and if you don't have one then to get one

>> In accordance with our contract

that would be the key, the contents of the contract

[Webwork]

There's too many variables for any of us to offer an opinion that will hold water.

Variables:

• Country
  
• State statutory and common law
  
• Conflicts of law if multistate
  
• Contents of contract
  
• Modifications of contract
  
• What "they" will have to say about "the deal"
  
• Letters or memos relating to the deal
  
• Actions by each party
  
• Timing of actions
  

Before you find yourself sued for consequential damages you should organize all your records, documents and "proofs", including a detailed memo of the history of the transaction and then sit down with a lawyer. Expect to pay for 2-3 hours of time.

Consider the consultation an insurance policy against surprises and large money damage awards.

[jtara]

I would never advise anyone to do business with a company that registers their client's domains in their own name.

That is, not only not to allow it, but not to do business with a company that even suggests it.

It is just a disaster waiting to happen, and both parties leave themselves open to either real or perceived risk, as you are now finding out.

I've worked on both sides, BTW, as both a producer and consumer of site development services. I'd give that advise in either role.