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Ok, maybe I'm missing something here. The mechanic said your engine is ruined, but you drove it to the mechanic? How can your engine be ruined if the only thing that seemed to be amiss was the coolant light coming on intermittently? Sounds like low coolant to me.
You've got a temperature gauge, right? Did you ever notice the temp gauge running high? If the engine was overheating, that would definitely be an indicator.
I'd document everything, call a good attorney, and take this guy for everything he's got.
kevin
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