> will afilias [...] repay the legal expenses occured by the party ?Both Afilias
and the WIPO have indemnified themselves in their policy agreement (which effectively
amounts to a contract) against any recourse for legal costs or damages.
> Afilias
should Keep the Challenges fees at minimum ...
It may be possible that they reduce
the fees for the Challenge of the last resort. However, they are under no legal obligation
to reduce them less than the $295 stipulated in their policy.
> 3. Afilias shouldnot
challenges the domains like this without
> estabilishing the Facts about the
non compliance by the registrant?
Their amended policy states that Afilias may
challenge for any unspecified reason. Asuming that they have to pay the third party
(WIPO) to make a challenge, one would assume that they have just cause to do so.
Keep
in mind that a contract does not completely indemnify any signatory against professional
negligence. However a significant burden of proof is usually placed on the plaintiff
to show such neglect. If you were to go down this route, you'd need solid evidence
that Afilias screwed up where a reasonable professional in the same situation would
not have.
Further, there are other cases in the courts at present that have yet
to determine how much responsiblity and obligation a registry should bear.
Most notably, The Electronic Frontier Foundation (EFF) has filed an amicus brief
against (co-defendant) Network Solutions for its botched transfer of sex.com, causing
the previous owner to lose the name to a hijacker.