I'll chime in at the risk of alienating the other coppers...I have a little insight into these matters as I work Internal Affairs.
These anti-tobacco rules suck, but as stated above, he knowingly signed the contract and did not adhere to it. Then, when caught violating the rules, he wants to fight it. Hmm, mixed message, me thinks.
As to the "facing your accuser" aspect, he nullified it by public admissions of the offense and possibly during the investigation.
Maybe this case will clue some people in as far as the attitude of cops that they are above "regular citizens" with respect to their duties and responsibilities 24/7. Many jurisdictions REQUIRE police action be taken whether on or off duty.
My agency fires or disciplines more officers for their off-duty conduct. It truly is a 24/7, lifetime commitment.