If you call the company and they turn you away when you are trying to return their product, what do you do?
I believe him calling apple to return it is a faithful attempt in the eyes of the court. It is not as if there are other numbers to call
Why he wasn't trasferred to higher ups?
I doubt Apple's CS department would know who to call in regards of a lost prototype device.
As stated, there was a lot more ways the seller could have returned it after dumb CS reps blew him off. Turning it into the bar and/or police station would have helped. Also, I am sure there were contacts in the iPhone before they bricked it the next morning. He could have called someone. If his facebook account had his phone number listed, call that number or his email. There was so much more this person could have done, but didn't. The excuse of Apple's secrecy preventing their CS department from handling it is not going to fly when the seller failed to do the other things.