Thank you all for the replies!

my car has been at the dealer since May 22. I was told by our provincial Automobile protection agency to not cause too much grieve with the dealer , as they could have easily told me that the car is out of warranty and that they wash their hands.

since they have agreed to replace the engine with an out of the crate new engine, I only want my car back.

Once I have it I will have it checked by the APA's mechanic and that all is to specs only then will it my decision to sue them for negligence and request the installation charges back.

I will keep you all informed.

That's quite a story. Just out of curiosity, is this dealer on Rue Bougainville in Montreal?

Can you get the old engine - easy to tell if it had run dry.

Worst comes to worst, have the dealer meet you half way on the hourly charge. Tell them that's a hell lot cheaper for both parties than going to court and you and them both know exactly what happened...

No its not that one, but the one in St leonard. Did you have any type of experience with the one you mentioned?

Yes, all very negative. 'Incompetent' would be too kind.

Good point. In that case, even without physical possession of the engine, one could negotiate the labour charge as being dependent on the result of an inspection of the engine by the Jaguar Canada representative ... not the dealership.

It is beginning to sound like Jaguar chipped in with an engine, expecting the dealer to chip in with the labour and the dealer is not holding up his end.

In fact, the dealer is looking to make a profit by charging retail shop rate. The dealer could break even, ignoring overhead on this one job, by charging only the wage paid to the mechanic. Therefore, say 16 hours x $30, or $480. Anything more than that and the dealer isn't offering goodwill ... he is making money. At retail shop rate, he is making as much money as if you booked the car in for regular work.

So, the suggested course of action is:

1. Confirm directly with the Jaguar Canada representative what the labour cost arrangement should be. It may well be a surprise to Jaguar Canada that the dealer is charging for labour. If that is the case, they will in turn surprise the dealer with a very awkward followup phone call or visit. Notice the requirement for direct communication without the dealer in the middle to alter the story.

2. Failing the above, negotiate the labour rate down to cost on the basis of the "goodwill" statement alone. Further negotiate towards zero on the basis of an engine inspection once out of the car. Pulling the pan is not a big deal when it is out.

2a. Mention aforesaid inspection possibility to the Jaguar Canada representative as possibility.

There is a legal provision making knowingly writing a check without funds a fraud.

However, one could pay by credit card and do a chargeback.

Or, write a check with sufficient funds, and immediately issue stop payment instructions to the bank. Expect the dealer to "hammer" the check as soon as possible.

It was tongue in cheek re the a/c, Plums, but definitely poetic justice.

Well done, Louenigma, hope you are bearing up and congratulations on getting the new engine!
I wish you well in your future thoughts and actions and if you have a fight on your hands, the righteous shall conquer!
You have brought a sad and unenviable plight to the forefront of everyones' mind and I am sure you have a lot of followers now.
One thing I find absolutely reassuring is that as a Jaguar owner, I feel as if it's a special league of decent people who care about what they drive, needless to say I believe a Jaguar is not just a car! From the non-thinking careless louts who scratch or dent your car in the supermarket carpark to the devious thieves we all hear about, who happen to want to steal anything, and of course (certain) dealers who prey on devout decent respectable people who "just want their car back".
I am sure I felt your emotion when you said made that comment and I hope to speak for others of like-minded enthusiasm!
Sure, the world is not perfect, alas it shall never be, but it will damn well feel like it when you are back behind the wheel of YOUR JAGUAR!
Live the Dream and if not, I hope it's coming soon!
Your patience will be rewarded, Godspeed your restoration and revitalisation, Louenigma!
Ps, he humbly adds:
I am not overtly religious but as I wrote it, I thought it sounded good!
Regards, Stu

I guess you wont be going back... or will the dealer expect to service the new engine...