Engine swap gone wrong.. Options

[SiriusVirus]

So in june of last year I decided to bring my celica back by paying to swap an engine in because of rod knock. 1500$ all together to have the car back and running. In september I was driving to school and my car died and began having rod knock sounds again... I called and chewed out the shop demanding they swap another engine. I drove with my friend to pick up my car and first i noticed my over drive was flickering on and off (I had my family mechanic fix it just a plug not put in all the way) probably a warning sign they did a crap job. I drove this car all the way up until now and then I realized in my garage I had oil dripping on the floor. I took my car to my family mechanic right away. Hes been with the car all week and told me there is oil all over the engine bay and he has to power wash the whole thing to figure out where its coming from. I spoke to him today and he told me the engine was never properly sealed its almost as though they went to a junk yard and just dropped it in and never even cleaned the engine bay. Those mechanics are claiming the warranty on their work is up after 3 months. Paying to get a rebuilt engine and it only lasting for 1 oil change is ridiculous! Im wondering should I take them to small claims court if they keep refusing to repair this for free? My mechanic told me it would cost him 800$ at the least to seal the engine its leaking from the block and cylinders.

So I have had a total of 3 engines in this car. Let me know what you guys think is the best course of action

Thanks in advance.

[DEATH]

Sounds like they gave you a junkyard motor and didnt reseal it. Which, for $1500 is about normal. It's not something I would have done to you but it is very common. Did they express in writing that they were going to do anything other than that? What is the wording in their work order? Rebuilt engine, etc. You weren't under the impression that you were getting a NEW engine right? Because that's not going to happen.
As for the oil leak - do you ever check your oil level or are you a start it and go kind of driver? These engines def leak from a few known places if certain sealing tricks aren't done [IE. the valve cover needs copious amounts of Toyota FIPG in the corners or it WILL leak all over the back of the engine, steering rack and pretty much everything else down there].

This post has been edited by DEATH: Mar 28, 2013 - 3:39 PM