A transmission is shipped to a vendor for a re-build. It had a catostrophic failure and needed new ring and pinion,etc. The transmission comes back to my shop, gets installed and blows up on a 1 mile test drive. My shop drains the oil and finds many shavings. The re-builder claims to not have cleaned the old metal and aluminum shavings from the case and the new ring and pinion (not new, but used and said to be in great shape) must have had a crack and failed.
The re-buider pays shipping back to him and back to my shop, and of course does not bill for the re-re-build, which included another ring and pinion and a new second gear. The question is, should the re-builder be paying my shop for all costs related to this mistake? Those costs are putting the transmission in, taking it out, breaking it down for shipping and for a huge amount of Swepco 301? My answer is yes as it was his error which created the extra costs.
Please let me know your opinion.
Thanks,
John:D