Can't help you with the legal specifics, but having recently worked in a flying club, I witnessed similar half-witted flying on one or two occasions and therefore can offer a little (not so tongue in cheek) advice.
As dublin bloke comments, we are a bit short of info, so I'll make a couple of assumptions...
One, you're a legal eagle.
Two, you're acting on behalf of Liz, who needs compensation for the PTSD.
Or three, you're acting on behalf of the CFI of the Flying Club/School who wants the retarded pilot grounded for life.
They are probably both wasting their money and your time...difficult to get the CAA to move in any direction other than the one they are already going in (plenty of Pprune threads to read for enlightenment in this area), however as you are tasked by the Law Society to counsel best advice (and not merely to act as a partner of Douie, Fleecem and Howe) pass this on...
Liz, be thankful you are in one piece and don't get in an aircraft with someone of dubious sanity again.
Mr CFI, be thankful you got your asset back, rewrite the Flying Order Book to include a mandatory, thorough competency check before hiring your kites to people you don't know.
My invoice is in the post.
Last edited by The Old Fat One; 17th Nov 2010 at 08:39.