The only thing I know is the kid played in NJ that year and wasn't forced to pay anything more to the DVHL team. He didn't try to recover the "evaluation" fee however. Maybe the the team didn't pursue the issue because they weren't in the DVHL anymore? I don't know.
At the tryout it's up to the club to decide, there are usually 3 tryout dates. If you get to the second one and decide you want out they'll normally grant release of the contract but its rare they'll give back your fee, normally the first tuition payment around $300. As has already been stated, the club will advise that money paid for ice, practice jersey and/or outside resources for evaluation. I haven't heard of anybody winning that battle when they ask for their fee back unless you can prove hardship. If you complete the tryouts and are placed, that's where it gets dicey. Especially for goalies and kids with noticeable talent. Clubs aren't as inclined to release the player especially if it's to go to another club. They can absolutely hold the family hostage and make the player miss the season. When the season is complete, they can choose to release or demand full payment for the season in order to warrant the release. If they don't pay they can't play in the DVHL, they're put on an advisory ban list until payment is made in full.