why would this ever go to trail

Maybe the trial is far away?

In any case, if you come to the attention of the FAA (like after a
crash), they go through your logbooks, and if they see that your logging
was irregular, there may be consequences, such as enforcement actions.
If you present your logbook for a rating and it does not meet their
approval, they may investigate further and find, for example, that you
have been flying without the relevant currency. If an insurance company
contested a claim, a judge's opinion might be forthcoming based on your
logbook. Any violation of the law can bite you, although most of the
time you can get away with it.

As for precedents being set, mistakes can also be made and corrected
later (a rating might be reversed if upon pursuing a further rating, it
is found that the original rating should not have been issued).

Jose
--
The monkey turns the crank and thinks he's making the music.
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