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botnPSA is not going to be able to submit the cards directly to SGC for grading. That will only complicate matters. Possibly an open dialogue between the two companies may not hurt.
SGC had already determined the condition of the cards at the time that they were graded and should not have to do it again. Under this particular circumstance there was no reason for the grades to be challenged. Brian certainly did not give his express authorization to PSA to down grade the cards. Unfortunately for both parties, PSA violated the agreement between them.
Due to the subjectivity of grading, were SGC to re-grade the cards and concur with PSA findings, I do not see how that hurts Brian's claim for damages. The cards never should have been broken out of the holders that they were in. It is Brian's right to enjoy the benefit of the cards having been graded at their highest level, even if that means that on that certain day in CA or in NJ, that the cards did not warrant the grades assigned.
Cards have these “inflated” values as a result of the holders that they are in. Sadly, the grade assigned is as important as the card itself and in some instances the grade assigned is more important due to the emphasis that still exists of collectors who buy holders and not the cards. In that respect that little flip with the number on it has become a part of the card as much as the paper that was used to make the card.