You're not an attorney. I emailed this over to a very good friend of mine who is a real attorney and I've maintained his plane for him for years.
His response:
"This wouldn't pass the "laugh test" (the judge laughs so hard he falls off the bench!) if this guy tried to use this as case law in your situation in regards to application of the FAR's you cited in the situation of someone having an instrument failure after takeoff. He clearly does not understand the issue at hand nor the applicability of case law."
That's all I got to say on that.
Good day.