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Thread: Legal action against a bad host?
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05-29-2003, 10:56 AM #1New Member
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Legal action against a bad host?
Does anyone knows what type of legal avenues are available that one can start against a bad host. I bought a reseller package from XeniaSystems later the name changed to Cyberhosts4. Company is run by Alan Lovgren and Brian Martin...( doing business also under : Emedius Systems Inc. I paid for a full year reseller account , these people vanished, site became unaccessible, I've had to refund some of my clients since they in turn could not access their site...Around here on this forum I hear a lot of things about host disappearing but nothing about legal action taken against them...there are avenues for people that are defrauded on auction sites, but what can be done against those resellers that pulls these kind of stunts...
Has anyone heard of any legal action taken against these type of hosting company
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05-29-2003, 11:07 AM #2Dennis Johnson
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Sure. But, unless the court is local to you, it really wouldn't benefit for you to begin litigation.
Best thing to do is, consult an attorney. Many give free intitial consultation.There is no best host. There is only the host that's best for you.
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05-29-2003, 11:17 AM #3Web Hosting Master
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Did you pay by credit card? Have you tried contacting your credit card's issuing bank and asking them to run a charge back on the transaction?
I think you will probably find the charge back route would be more cost effective than the legal avenue. You could spend thousands of dollars in legal fees and not even track them down.
Perhaps do some more research when selecting your provide next time...
However, as SWR said. If you do plan to take this further, definitely consult an attorney first.
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05-29-2003, 11:23 AM #4Web Hosting Master
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Just a general question.
Why do people pay for hosting up front on a yearly basis? I know it's cheaper but you must appreciate the risk involved in paying this way.
I have been hosting for 3 years but dont offer yearly plans for that reason, I intend to be here in a years time but none of us can guarantee we will be.
It just does not make sense to pay yearly up front!!!! but thats my opinion (I am entitled to it) before anyone attacks my comments.
In answer to your question, take the hit. The money you could spend taking legal action could outway the loss you have made if you dont get them to court.
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05-29-2003, 11:32 AM #5Web Hosting Master
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Originally posted by L Wisener
Why do people pay for hosting up front on a yearly basis? I know it's cheaper but you must appreciate the risk involved in paying this way.
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05-29-2003, 12:20 PM #6Web Hosting Master
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Yes I answered my own question but you ignored the point!!!
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05-29-2003, 01:07 PM #7Web Hosting Master
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Unless it's a large premium host, the host isn't going to have any money to pay a judgment even if you win. Chalk it up as a learning experience and choose a better host next time.
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05-29-2003, 01:19 PM #8Web Hosting Master
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Also
It's one thing to recover what you paid, but quite a bit more difficult to recover based on any damages to your business. Your rights would be determined by the Terms you agreed to and the applicable state or country laws.
When all is said and done it just generally makes no sense. If it's a small amount, the time, effort and cost make it non-beneficial. It it's a large amount, the odds of them having it and you being able to get it are slim. Certainly, you would have to identify the legal entity and research them to know.
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05-29-2003, 03:26 PM #9Web Hosting Master
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Do some Google search for the state the company is located in and see if there is some sort of consumer fraud division or cyber fraud, etc. You may have to poke around in the state government website to find something relevant.
A lot of states are enacting legislation to prevent fraud over the internet by companies that are located in their boundaries. You may be able to get relief through that, at no cost to you other than an e-mail.Laura K.
http://www.madmousergraphics.com
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05-30-2003, 02:03 AM #10Web Hosting Master
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I still don't understand why people STILL pay YEARLY?
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05-30-2003, 11:05 AM #11Web Hosting Guru
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Originally posted by VNPIXEL
I still don't understand why people STILL pay YEARLY?
1. For businesses, it's simply easier. I worked with a resort in upstate New York and the thought of paying a company less than $15 a month was not pleasant for them, they wanted to pay an amount that would actually look like "something." So they prepaid for a year or two.
2. Somewhat same as #1, but I think for the same reason many pay for their domains for multiple years, instead of just the current one.
ALSO:
My company accounts for the prepaid amounts as unearned income under liabilities. This is what everyone should do. Legally, in the event of liquidation, their money will be returned, as according to our accounting, it isn't ours yet.
Richard
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05-30-2003, 12:55 PM #12Junior Guru Wannabe
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Another thing to keep into mind here is that most web hosting companies are not legitamite LLC's.
So going after them would be rather quite hard to do since there is really no record of their exsistence.
My advice is if you know a good lawyer, and you have money to pay him you could track these guys down and get your money. If they do not have it then, the judge can tax their wages until they pay you off. It can be done, but if we are talking for like $20, your time and money is better worth spent looking for a new host.~Jeff Vreeland
President, VM Technologies