GD cancel winning bid due to listing error

[Ricktay]

Got an email from Godaddy recently as below:

We are contacting you regarding your recent won auction for w******ls.com.

We regret to inform you that there was a listing error with this domain that caused the domain to be listed for much lower than the intended amount by the seller. As such, we have had to cancel the listing/transaction. We have identified the issue and have taken steps to ensure this problem does not happen again.

We regret that this auction could not be fulfilled at this time.

and i asked why it could happen, and they reply the following:

Due to a backend system error, the domain w*****ls.com was listed for much lower amount than what the seller intended to.

Most of the domain transactions on the GoDaddy Auctions platform are successful, but very rarely we stumble upon a case like this.

We're taking steps to ensure this doesn't happen again and we apologize about the inconvenience caused.

If you still wish to purchase the domain, please wait a week or so and check if there will be a new listing in which you can participate.

My question is, what is my legal stand here? Appreciate any input. thanks

 

[jberryhill]

My question is, what is my legal stand here?

The conduct of GoDaddy auctions is governed by whatever terms to which you agreed when you signed up to bid, and those terms probably include GoDaddy's general terms of service.

Where are you planning to file an action, and how much are you willing to spend on it?

It is likely that the relevant GoDaddy terms require any litigation concerning either a name registered through GoDaddy or the conduct of an auction to be brought in Arizona. So, if you don't live in Arizona, and don't plan on traveling there anytime soon, you are first going to want to engage an attorney in Arizona. If the dispute involves more than $75,000 and all of the parties are in different states, then you could bump it up to federal court, in which it is simpler to use an out-of-state attorney (provided that the out-of-state attorney engages an Arizona attorney for procedural compliance). Count on somewhere between $10k - $20k to get the ball rolling. In general, any attorney is going to want a significant retainer, since the attorney cannot withdraw from the suit without the court's permission once that attorney has agreed to represent you and bring an action.

What's your litigation budget?