First, I am not a lawyer, so..... 1) threats of a lawsuit are not a lawsuit; 1a) lots of "bullies" like to throw around the threat of a lawsuit in order to "g

First, I am not a lawyer, so..... 1) threats of a lawsuit are not a lawsuit; 1a) lots of "bullies" like to throw around the threat of a lawsuit in order to "get their way". But, as with most bullies, they are all bark and no bite; 2) no contract means nothing concrete to sue over. So any suit (were it to even be filed) would devolve into a he-said she-said argument match; 3) his "idea" is no more or less ruined than before you started. Delayed, yes, ruined, no; 4) did you refund "all" the money (and has he cashed the check [you did use a check, so you can prove he received the money, right?]); 4a) if you refunded less that the total (i.e., the cost of purchasing the servers/domains) then just also transfer the domains and the server over to him, (with a paper trail) and then you will have properly refunded everything; 4b) if you have in fact refunded every penny (and/or turned over the domain and server) he has even less legs to stand on as far as a suit.