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Who's responsible?

My husband took our vehicle in for an oil change. On the way home from this oil change, the vehicle died while he was driving it. The mechanic determined that something went wrong during the oil change, and the filter came off, emptying all the oil out. It completely blew the engine. The place that performed the oil change is blaming the filter manufacturer, and not taking any of the blame. They are willing to work with us minimally, but are saying we're lucky they are doing so. We want the cost of the engine replacement, plus a few weeks worth of car rental to be covered by them. They are giving us such a hard time about this, and are not claiming any responsibility for whatever went wrong. Do we talk to a lawyer about this? My husband could have been seriously injured when the car died. I don't know whether to take the little bit the oil change place is offering, or to contact a lawyer ourselves.
Well, the good news for you is that this would be a small-claims action. I would pursue the shop that did the work - you may even be able to file a claim with their insurance instead of having to sue them. Let them duke it out with the manufacturer of the oil filter.
One other thing - you're really not due the value of a brand new engine - you're due the value of an engine with 16,000 miles on it. You're probably looking at a rebuilt engine.
It might be impossible to find an engine with such a low mileage engine used or rebuilt.

Totaling out the car for a cash payout might be an option they should entertain if it is offered.
Totaling a car that's worth somewhere in the mid-teens over $4k-$6k worth of damage isn't going to happen.
ok, well I'm of the mind that this is much closer to half the value of the car.
Let's say 5000, MAYBE 6,000 plus for the part + $1500 (15 hours @ $100) labor and ~800 for the rental... It's not outside teh realm of possibility.
If a brand new engine costs $5k, a rebuilt is going to cost less.
And, using your estimates, if the car is worth ~$13,000 and the repairs are ~$8,500, we're still looking at about 65% of the value. I'll say it again, the car will not be totaled over this.