Putting the issue of costs (and any bruised ego) aside for a moment, cookiimonstar1 is going to spend the next few years filling out airline applications for his first job, and he will be ticking the "Yes" box to the question "Have you ever failed a flight test?". He will be excluded from any airline selection process which only accept a first series pass (why else is the box there but to act as a filter for the thousands of applications).
Win or lose the case against the CAA, it aint goint to change the fact that he failed his first flight test. What's he going to put, "Yes but under appeal"?
As someone else has already said, the course of action he plans to undertake may stick to him like s**t on a blanket and if he tries to explain to a potential employer what happened the way he has here, he won't stand a chance.