Well, at the end of the day a fare is a fare. However, If they checked in 25 mins late (stupid to say the least) they should appreciate that planes fill up!
Where in the contract does it say that you may sit with your chosen fellow passenger? The airline will carry you from A to B and there is your money's worth! I mean what more do people want?
I dont work in ticket sales (student pilot) but I cannot see how someone can complain about something so trivial and actually get compensation for it
surely it is the passenger's responsibility to to arrive on time in order to secure the seat they booked!?