CASA will claim qualified privilege, as will the neighbour (if the neighbour becomes a party).
The disclosure to the employer was justified - so it will be argued - on the grounds of “safety”.
It appears that someone within the employer had this totally crazy idea that before disrupting and potentially f*cking someone’s career and reputation on the basis of a complaint, the complaint should be put to the person. However, the interests of “safety” apparently override all that. It’s better that nine completely fit and proper pilots’ careers are disrupted and potentially f*cked on the basis of complaints the substance of which they are not aware, than one pilot with an undisclosed ingrown toenail is allowed to fly. It’s all about “safety”.
I’d say that it makes me angry and sick, but I guess that would put my medical certificate at risk.