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That sounds strange, registrars can lock domains that are under legal dispute until the dispute is solved.

That depends on what the dispute is to begin with. But generally they don't
have to do squat in so-called civil disputes like this one.

I've handled my fair share of this in my registrar days. One goof-up (which I
might blog about in the future) has taught me why they don't normally want
to get involved in messes of this sort.
 
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