To be honest, if you know that this "company" is just a guy behind a PC, then sueing him is just a waste of time and YOUR money. I see that you are reselling web Hosting yourself, and should know very well that you get what you pay for. I would focus more on securing a more reliable provider instead. Good luck.
By the way, you should be running *some* backup of your clients' files in a regular manner too.






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