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If a hosting company (for websites) hosts data for a company…

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If a hosting company (for...
If a hosting company (for websites) hosts data for a company and suspends a customer for a payment issue, would it be considered a duty for their company to properly notify the customer prior to any deletion of data? A hosting company was hosting our data. We were slightly behind on one of our bills. We called them and made a 50% payment in good faith and told them we needed a little more time to get the account in good standing. Approximately 10 days later, I called to make the remaining payment - to learn that they deleted all of our data. Customer records. Expensive software development that took years go build. They did not provide proper notice in the form of a clear e-mail or phone call. They claim they have a disclaimer in their user agreement that gives them permission to delete data and limits their liability to 12 months of service fees.While I feel they may have the user agreement to fall back on, I feel they were negligent and could have simply sent a quick clear e-mail to the tune of 'DATA PENDING DELETION' or a phone call to the same tune. But, nothing. I threatened to sue. They offered to settle for pennies on the dollar to what it will cost to replace the data. They made no commitment to change their process. Could I still prove liability and possible receive punitive full real and punitive damages?They also claim that their agreement forces arbitration in Nevada, though I feel it may still be possible to file locally.Thanks.
Submitted: 8 months ago.Category: Business Law
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Answered in 4 minutes by:
9/19/2017
Business Lawyer: Lucy, Esq., Attorney replied 8 months ago
Lucy, Esq.
Lucy, Esq., Attorney
Category: Business Law
Satisfied Customers: 32,260
Experience: Attorney
Verified

Hi,

I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.

Did you look at the service agreement to verify whether it says what they're claiming?

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Customer reply replied 8 months ago
They did have something in the contract but I just accepted their settlement to be done with it.
Business Lawyer: Lucy, Esq., Attorney replied 8 months ago

I can understand that. It sounds like you don't need any more help with this, but let me know if you have any other questions.

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