Can I legally withhold transfer of a domain name if my client owes me money for work done on the website?
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Can I legally withhold transfer of a domain name if my client owes me money for work done on the website?
I have done work for a client on their website. They are refusing to pay for it. At this time, the domain name and website are being hosted by me so I have control over the domain name. Can I legally withhold the transfer of their domain name back to them until their account is paid in full?
Asked on December 15, 2011 under Business Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you had obtained the domain name for them, you could likely do this. A contract, including an agreement to work on a website, is based on mutual obligations or promises. If one party has breached its obligations in a material, or important way--such as by not paying for services--the other party may cease performing its obligations--and so would not be required to turn over domain name it had obtained or created for the first part.
However, if the domain name belonged to them prior to you doing the work, and you were simply, as part of your services, hosting, then legally you would have to return it to them--you do not have a right to keep their property. You will have to seek another way to get them to pay, such s suing in small claims court. If there is fee or cost involved for returning the domain name, you may reasonable require payment of that fee, etc. up front, under these circumstances.
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