I saw the various questions on SO about this. I'm not sure they answered me. I'm in the USA. Someone asked me about hosting on a company in South Africa. They are not a big company. This person simply liked the company for whatever reason. I only saw one horror story. Not many reviews really. It is a small outfit from what I can tell.

But, the fact of it being in South Africa, does that matter? Do people ever pursue legal action against hosting companies anyway? The users will all be in the States.

edit: I'm not sure why this is unclear.