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Man that SUCKS!!! I'd be pissed too.
I fully agree that he owes you a replacement transmission to the same quality and specs that you originally paid for. And because I wouldn't trust him I would be willing to pay another shop to inspect the transmission before I installed it.
BUT
I don't see how he is liable for any other damage, just the replacement transmission.
In fact you will probably see that written on his paperwork, but in a more legalese fashion.
just my 2 cents......
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"Do the things you fear to do and the death of fear is certain"
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