Ok, good to hear, you are not rigid. I would also like to kill somebody like that. Then its just a question if being dead is a punishment. (well, thats another story anyway, just entered my mind because its something I have been thinking of lately.)
anyways i just decided to make a backup and leave it, the guy doesnt deserve such hassle watch out for tr0nic selling his site for the 3rd time
On pondering your dilemma as with any 'copyright issue' the work belongs to the creator until such time as the rights are closed with the conclusion of a contract... if no contract exists the rights remain yours. As such, C&D to the individual, the host, and takedown orders to the search engines places you are the right side of the law.
Go ahead and try telling that to some judge(with or without computer knowledge) and watch him b-slap you. "Sorry I stole something the door was open." Now this guy sounds like a real scumbag, if that is the case then you just gave him the ammunition he needs to make your life a little rough for a while: Now if you piss they guy off (like by smearing his name here, justified or not) then you just gave him an out by hacking/breaking/sneaking (whatever you feel like calling it) onto his server after you no longer had expressed permission. Lets just hope the guy does not have a lot of free time on his hands to perpetuate a personal vendetta.
Until he pays for the job, I think that you can consider that all the job is yours. So that if he don't pays, you can get it. Another solution is to put a page in his server telling him to pay ;-)