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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