I now believe that I should have made a lot of noise when someone tried to scam me in this way, and should have spent less time worrying about my reputation. I'm still not sure I should have gone as far as shutting down the (online-only) businesses which I still had passwords to, but I no longer view that as beyond the pale, as I did then.
[Edit: Although, in this case, iwwr's comment suggests it was the developer who was shady.]
That's right, and you can go in endless circles second guessing which party was in the right. If you decide that it was wrong to take the work back, you're just siding with the client. It's not hard to imagine them having done something equally drastic that we don't know about.
In many cases, contracting is effectively lawless and the stakes can be arbitrarily high. There aren't many actions I would categorically rule as out of bounds.
Keep in mind that there are people out there who are utter wrecking balls. They do nothing but damage to everyone they work with, and sometimes to themselves as well. The "professionalism" of their victims is what allows them to keep going.
Man, it's tiring just thinking about her drama.
You don't even know the guy. They could be an incredible developer and you wouldn't work with them because they'll screw you over if you screw them over first?
Sound logic.
1) The only thing we know about the guy is that he screwed the client over. The client may or may not have deserved it. Likely deserved it, if you prefer.
2) I don't want to work with him on the chance that the client didn't deserve it, and he'll screw me over when I don't deserve it.
Honestly, I don't see what's controversial about that. It's a massive red flag. Of course knowing more about the guy, or his situation, might change my mind. But that's true of any candidate.
(Note that I realise he's replied to the thread here now - I'm just trying to explain the thinking in my last post.)
We only know one side of the story. It could be that they added a whole bunch of extra charges that weren't in the contract, and when the client balked, did this as blackmail. Or maybe the work was of horrible quality. Who knows? I don't want to work with people that could potentially go nuclear on me over a legitimate dispute.
On the other hand, I'd have no trouble working with someone that has a history of suing clients that don't pay up. Or even someone who point blank told me he'd sue me if I didn't pay up (although I'd consider it mildly offensive). Since I have no intention of doing something that'll make me lose a court case, I don't fear getting sued.
Loose cannons, on the other hand, I do fear, which these guys clearly are. Even if they're in the right, this time.