I had a similar experience with Direct TV. They installed my dish without permission from my building management, I got a takedown notice, and didnt want to pay the 430 dollar termination fee. Turns out they could not install without permission and they did. This is beside the fact that they totally fucked up my order. And their service sucks ass.
I called multiple times and sent 5 emails, each getting closer and closer to a lawsuit. $400 from someone willing to fight is less pricey than a day or two in court. They just don't want to give this to anyone, if you are willing to fight you will usually get what you deserve.
In this case, the guy already had laws listed and probably just made it clear that there will be a day in court. Its cheaper to take the $400 hit.