Question about refunding

[aimbotfriend]

What is the name of your state (only U.S. law)? TX

Please point me in the direction I need to go to ask this question if I'm in the wrong place.

First, my friend purchased a dedicated server from an online company that we use for our gaming. Customer service was good until in May 2009, 7 months after first renting the server. It went down hill and the guy was impossible to get ahold of. He hijacked our machine after he learned that we weren't going to host another month with him and we were paid up 3 more weeks. We settled with the jerk to shut the box down entirely. Payments were via a paypal subscription.

The subscription wasn't canceled by our friend and it sent the jerk a large sum of money. He decided that he wasn't going to refund it and said thank you for the donation, which isn't the case. Paypal refuses to refund the money. The guy's business doesn't seem legit and when requested for a business ID, he ignored us. We reported him to the IRS for tax evasion because we know now that he doesn't have a legit business license.

What I'd like to know is the following. Is there a law that says once we accidently send a sum of money for nothing, the business or person must refund it? Paypal refuses to handle this and there was a certain amount of money taken from a bank account.

If the person isn't legit, are there other authorities we can contact?

We are going to take him to small claims court and we think we have the case setup properly. Under your recommendation, what can we use against him? His terms of service didn't exist on the website and he did update it to protect himself afterwards. We have screenshots of his broken Terms of Service. Can they be used in court?

Please advise us.

AimbotFriend.