That's a pretty decent suggestion @networkn :)

Heh, I have my days. 

Having been through a number of these similar but not totally identical situations on behalf of clients, it's often about what is expeditious rather than what is legally or morally "right". The huge win here, is that Client is prepared to pay, which gives you a solution no matter what. 

It's a lot harder when the client isn't happy to pay, though in most situations, they become willing to pay once the pressure is on to access their data. Probably what the old IT company was banking on, whether it's right or wrong. Irks a little to need to solve this way, but ultimately, everyone right now probably has bigger things to worry about. 

MSPs who play the "you haven't paid game" and block access should lose their dealership. It's like 3rd party ISP's who won't give account info to clients who want to port away.

Definitely a follow up with the commerce commission is required regardless of the outcome.

just a thought

if they have access to their domain (if the using one for their 365 account)

they should be able to set up a new 365 account with their domain and start a new email etc account

but they might lose their old emails etc of not already downloaded

biggal:

 

if they have access to their domain (if the using one for their 365 account)

 

they should be able to set up a new 365 account with their domain and start a new email etc account

Thanks for the suggestion, but no you can't start a new tenancy if the domain exists in an existing tenancy.  I had this scenario a couple of years ago with a client who won a legal dispute with another company.  We tried to add the domain name to an existing 365 tenancy and was told that it existed in another tenancy.  We got Microsoft involved and they refused to remove the domain from the other tenancy, even after being shown court documents.  The other party stonewalled and in the end the client directed us to give up and emails were set up on another platform.  It's possible this has changed, but I doubt it.

Plus, in this case there is a significant amount of data that would potentially be lost.

biggal:

 

just a thought

 

if they have access to their domain (if the using one for their 365 account)

 

they should be able to set up a new 365 account with their domain and start a new email etc account

 

but they might lose their old emails etc of not already downloaded

 

Right idea, wrong execution.

You can do an admin takeover within the tenant if you have access to the DNS panel.
https://docs.microsoft.com/en-us/microsoft-365/admin/misc/become-the-admin?view=o365-worldwide

There are 5 CSP providers in NZ but not sure that is an avenue. Microsoft typically won't get involved in disputes like this, it is frowned upon as a dick move though. The tenant belongs to the customer not the partner and any pay disputes should be resolved like grown ups.