If this is how things went down I see just about equal fault on both sides (contracts aside, I'd guess suspension of all accounts is in the "if you don't pay" part of the contract if not then there's something there for sure).
When the accounts were suspended for non payment instead of telling the host to "fuck off" they could have attempted to arrange an alternate payment method. If they were going to antagonise their former host (I say former as the obligation to host the data presumably ended on non-payment) then they could have used their CP, it seems, to download backups - then they could profane their host for wanting payment in return for service happy in the knowledge they were untouchable.
As I understand it, there are two people here. Guy[a] didn't pay, and had his account shut down. Fine. Guy[b], who is Guy[a]'s friend, simply bitched them out on twitter, and lost his account - along with ALL of his backups - in the process.
Correct me if I'm wrong, but if I were Guy[b], I'd consider googling lawyers.
When the accounts were suspended for non payment instead of telling the host to "fuck off" they could have attempted to arrange an alternate payment method. If they were going to antagonise their former host (I say former as the obligation to host the data presumably ended on non-payment) then they could have used their CP, it seems, to download backups - then they could profane their host for wanting payment in return for service happy in the knowledge they were untouchable.