Originally Posted by Sweep_the_Leg

A quick cars.com search shows a few 4.8is around the country with close to 50K on the clock. They run as high as $29K (seems too high). There are quite a few in the 70-80K range, which are closer to the $23K offered.

I would counter their $23K offer with $29K, plus they cover any shipping costs for an equivalent replacement 4.8is, plus they continue to let you use a loaner until you finalize the deal for the new one. If you can't find one you like in the 50K mileage range, then buy one with higher mileage and make another stipulation of the settlement that the dealer covers a year or two of extended warranty coverage (to make up for the mileage difference).

It seems clear that the cost and logistical challenges of replacing the engine mean that you should wave goodbye to your car (which is sad and frustrating, I know). But realistically, an engine swap would make me more nervous than just biting the bullet and buying a new 4.8is.

Incidentally, I'm an attorney. Although I don't practice in WA, I'm happy to provide you with a "second opinion" of sorts, and I can give you an idea of what you may be in for if you choose to go the litigation route (hint: a long wait, added frustration and delay, and ultimately probably less satisfaction than you were hoping for).