There have been a lot of cases like this decided the same way, where a 3rd-party uses the TM to resell the TM-owners products. Like you're a Mercedes dealer in Toronto and you buy TorontoMercedes.ca or MercedesToronto.ca.
Stuff like that gets upheld in the respondent's favor all the time and I don't really understand the surprise, especially as the guy had been operating under that domain for 18 years.
This smells like a recent business dispute being incorrectly tried using the UDRP.