If the seller made an offer contingent on inspection, everything else you say is moot. They said they would buy it if it passed their inspection, it "failed" their inspection so the deal is off. Whether or not the inspector was qualified to inspect the house, or whether or not they followed proper procedure is irrelevant. The offer and your acceptance formed a contract; unless that contract specified otherwise they get to kill the deal if they didn't like the inspection results.
BTW, I've never heard of anyone paying for an inspection before making an offer.
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Today's Featured Article - The Revival of a John Deere Combine - by The Red, John Fritz. For several years I had been driving by a farm house on the west side of Indianapolis that had a John Deere combine parked in high weeds in a lot behind the house. The gentleman no longer farmed because the entire area was developed with housing and light industry. I had stopped several times and knocked on the door but no one would answer. My curiosity was up and I wanted to contact the owner. I wanted to see what he planned to do with the combine.
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