A Swedish company, Crisby Studio AB, has filed a lawsuit against GoDaddy after the registrar retracted a domain purchased in an expired auction nearly two months after the transaction.
Crisby Studio AB acquired the domain calor.com (meaning “heat” or “hot” in Spanish) from GoDaddy’s expired domain auction in early April. The company promptly set up a webpage and subsequently entered into a joint venture to develop the domain, guaranteeing its ownership to the partner. Crisby also fielded an inquiry through a GoDaddy broker, indicating that the domain was already earmarked for development and would require a substantial offer to consider selling.
However, on June 4, Crisby received an unexpected email from GoDaddy informing them that the domain had been auctioned in error. GoDaddy decided to reclaim the domain, refund the purchase price, and offer a $350 credit for the inconvenience caused.
Frustrated by the turn of events, Crisby filed a lawsuit in the U.S. District Court in Arizona last week. The company argues that the domain was not only transferred but also reclaimed nearly two months after the purchase, following significant investments and plans for its use. Furthermore, the domain had expired at a registrar owned by GoDaddy, not a third-party registrar.
In response to the lawsuit, the judge overseeing the case issued a temporary restraining order on Tuesday, preventing the domain from expiring, being removed from GoDaddy, or being sold to another party.
Attorney Jeffrey Neuman, representing Crisby Studio AB, is working with local counsel Messner Reeves LLP on the case.
You Might Be Interested In
