Conduct Or Legal Operating Practice

I have a ethics and legality scenario I would like to pose here. This is to be considered a fictional scenario and any similarity to any real company or person is unintentional.

COMPANY X has colo racks in DATACENTER and hosts a client named COMPANY Y. COMPANY Y also hosts 50 small web sites on cpanel and 40 VPS servers on their linux VPS node in exchange for a discount or other compensation. During the month of may and COMPANY Y's bill raises from being 3000 past due to over 12000 past due to various reasons including purchasing of hds from the DATACENTER using COMPANY X's account, tech work dont by DATACENTER for COMPANY Y needed also billed to COMPANY X's account, as well as BW and rack costs. Seeing this alrming bill by the end of May COMPANY X begins putting pressure on COMPANY Y to pay some invoices as no payments were received during the entire month of may and COMPANY X is also having a hard time paying DATACENTER due to not being paid by COMPANY Y but makes efforts to pay 25% of the outstanding bill in June.

Near the end of june COMPANY X has had enough and arrives at the datacetner to attempt to move theritr clients off COMPANY Ys hardware so they can suspend service of COMPANY Y completely. On the visit COMPANY X brings 2 new servers in and begins moving clients of their over and COMPANY X notices this action and begins to suspend and remove access to all of COMPANY X's clients. COMPANY X then decided to power off the boxes of COMPANY Y and removes drives containing COMPANY X customer data for offline recovery. and because they beleived the DATACENTER might be untrustworthy enough to release hardware fromt heir rakcs without their permission. The drives were for as much colatteral purposes as for recoverying customer data. They then pack the drives in boxes and a bag and leave the datacenter having spent nearly 20 hours working and head on a long trip home and signs out of the data center in front of various techs holding the server parts and tools.

Upon arriving back to their office/home

They were informed that the removal of the HDs was not allowed byt he datacenter because the account was past due and it was discovered that several drives with cOMPANY X's clients were left in the datacenter which COMPANY X now wishes they had remembered to get. DATACENTER is furious and demands the account be paid in full by a fixed time or the entire colo will be cut power. COMPANY X scrambles to find others to help them and another major client who has alot at risk decides to help and a payment of $7160 is made to DATACETNER but it came in a few minutes past the deadline. DATACETNER had suspended servuce, and cut power but stated they wil return service shortly. Shortly after this it is discovered that several servers belonging to COMANY X and two other companies who were supsended in the same day were not int he rack anymore. DATACENTER accout rep responds with the following message in ICQ/AIM .....