Can Stub hub charge me a "renege" fee?

My bro stopped the sale because he lives in Portland, Oregon and reselling tickets higher then face value is illegal, which he didn't know till he was asked to confirm the sale, which he did not. Stub Hub says they had to get better tickets for the buyers and he is responsible for the extra money it cost to furnish those. But they sold the tickets above the face value. Does he have a case to get out of the fee?