I think he's counting on the part of the contract that he describes as being roughly "If O'Reilly fails to do X, Y and Z, the rights automatically revert to me." It sounds like he is confident that it is O'Reilly that breached the contract, not him.
In publishing contracts I've entered into with major publishers, it usually says the rights revert back to me after 2 years of it being out of print. Not immediately.