How many Compass tires are sold direct vs being sold by bike shops?
Some business choices are done based on what is "right". Other choices are done based on what a business thinks will make them the most money. So, if a big store threatened to cancel all their orders and to carry a competitor's product, they company might quickly change their tune.
In this case, I would think nobody would be able to know for sure who was at fault. Compass, the LBS, or the Cyclist.
The wholesale cost of the rim is probably around $30. Perhaps Compass decided to pay for the rim and the LBS decided to kick in the labor to rebuild the wheel.