Originally Posted by sigmafour
You can fight the warranty company and ultimately if you are a big enough a-hole they will start to pay out, squeaky wheel etc. but their preferred shops/places they will force you to use will likely not build you a good a motor as one where you are overseeing it yourself. So I don't know which way you want to try and take that. Find yourself a really good specialist and for that money you should end up with a hell of an engine that will put a smile on your face again. I wish you the best of luck and hope we see a nice engine build thread start up soon!
Sigmafour is right. First, you should have taken it to your mechanic. That is allowed. You walked your car into the lion's den...their mechanic looked for any reason at all to weasel the warranty company out of the repair. These 'mechanic shops' of theirs are not there to serve you, they're there to serve the warranty company. If they won't cover the repair, contact a lawyer, contact your local better business burea and see where to proceed. Max is right, this isn't some rubber hose that deteriorates over time, it's a hard line. It's not a time replaceable part. The first thing is get your car to your mechanic and not this shop that wants to give you a used engine.
I just went through a very similar repair with my warranty company, although my failure was a ring land and not a supply line. An oil supply line is part of the engine lubrication system and should be covered. Keep fighting them!