GoDaddy sued over expired domain purchase clawback (1.Viewing)

A Swedish company has sued GoDaddy after a domain it purchased in an expired domain auction was clawed back by the registrar nearly two months after it bought it.

Crisby Studio AB bought calor.com (heat/hot in Spanish) in an expired domain auction at GoDaddy in early April this year. It immediately set up a page on the domain.

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Crisby also received an inquiry through a GoDaddy broker for the domain, to which it responded that it already had plans to develop the domain and that it would take a substantial offer to change its plans.

Then, on June 4, the company received a surprising email: GoDaddy said the domain was auctioned in error. It was taking the domain back, refunding Crisby’s purchase price, plus giving it a $350 credit for the inconvenience.

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The case involves Crisby Studio AB and Niklas Thorin (Plaintiffs) suing GoDaddy, Inc., GoDaddy.com, LLC, and 123-Reg Limited (Defendants). The plaintiffs claim that after successfully purchasing and paying for the domain name "calor.com" through GoDaddy’s auction platform, GoDaddy wrongfully removed the domain from their account two months later, citing an error. The plaintiffs had already started using the domain for a business venture and claim that this wrongful act caused them significant harm, including breach of contract, lost business opportunities, and reputational damage.

The plaintiffs are seeking:

1. The return of the domain.
2. Damages exceeding $75,000.
3. Injunctive relief to prevent further interference with the domain's ownership and their business.

Key legal claims include:

• Conversion and trespass to chattel.
• Breach of auction membership contract and domain registration agreement.
• Tortious interference with prospective economic advantage and contract.
• Gross negligence and negligent misrepresentation

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