I'm assuming the designer doesn't own the website domain. This is like breaking into someone's property, and saying that you won't leave until a demand is met. He should really consult a lawyer before he gets criminally prosecuted.
The domain is registered with hostek.com, which is a web hosting company too, so I assume it's hosted there. WHOIS says the domain registration is owned by Onemine. You'd have to ask them and the court system who's actually legally responsible for the computers involved, but it's not looking very NYCFreshMarket-y to me.