Having read the court documents, I think there is a larger issue at play here that needs to be understood. Under item #5 of the complaint, the instructor is claimed to be an agent or employee of PADI. In its response, PADI denies that he is an agent or an employee of PADI.
Anyone associated with PADI in the last couple of years should recognize the language. For the past year or so PADI has gone to great lengths to "remind" people that they are not an agency, and that individual instructors, dive shops, etc., are not agents. The latest liability release and student record forms have a sign off for the customer to acknowledge this. I believe this all comes from an earlier and extremely important case. My understanding of this comes from a person who was hired to be an expert witness in that case. I think we all should try to get our heads around its implications.
In the earlier case, a dive club chartered a boat to take them for a three tank dive. Two members of the club, who were both PADI DMs, ran the show on the boat. They took role call after each dive to make sure each diver had gotten back on the boat before it went off to the next site. Incredibly, they missed a diver after the first dive, and they missed him again after the second. Luckily, he was found drifting in the ocean later that day by another boat.
In the ensuing lawsuit, PADI was included under the argument that the two DMs were acting as "agents" of PADI. Think about it. PADI had nothing to do with the charter. There was no instruction going on. No standards were involved. Taking the role accurately is not part of DM training. (In fact, only the captain or a boat employee can call the role, but the attorneys missed that little tidbit.) Despite that, the jury did indeed decide that the DMs were agents of PADI, and they found PADI liable to the tune of $2 million.
Now think that one through in terms of a precedent. Does it mean that every time any professional screws up in any way, the agency under which that professional trained can be sued, even if they did not have the most remote ties to the case? If I were running an agency, that would scare the bejeezus out of me.