Facebook sues NameCheap for allowing people to register phishing domains, and failing to meet their obligation to provide information about those domains when notified. But it's not near as good a headline.
I'll bet that clause was intended to apply to law enforcement, but as worded (IANAL) it appears to say that literally anyone could send a registrar proof of "reasonable evidence of harm", and they're liable unless they turn it over. Very odd.
3.7.7.3 Any Registered Name Holder that intends to license use of a domain name to a third party is nonetheless the Registered Name Holder of record and is responsible for providing its own full contact information and for providing and updating accurate technical and administrative contact information adequate to facilitate timely resolution of any problems that arise in connection with the Registered Name. A Registered Name Holder licensing use of a Registered Name according to this provision shall accept liability for harm caused by wrongful use of the Registered Name, unless it discloses the current contact information provided by the licensee and the identity of the licensee within seven (7) days to a party providing the Registered Name Holder reasonable evidence of actionable harm.
