I'v have made them show you the fault codes in the computer saying the thing ran hot. Any shop with a code reader should have been able to do that very easily. If there was no code there was no overheating incident.
I can say I have seen engines run hot, and not register as hot on the guage, because they ran low on coolant. Due to the low coolant the sensing bulb was not imersed completely in the liquid and because of that was sensing air temp in the system and not sense the true temp of the water. Thing is, in your case, you say the system was full after the fact so that should not have been an issue.
That said if it was full of water and overheated, it should have blown coolant past the pressure cap, and based on what your saying it didn't do that either. In the end it sounds to me like you got screwed. Not being in the situation personally I can't speak to the whole situation other than to say that at this point, if I were you, the very least that would happen would be that everyone involved got a bad rap with the BBB. The I'd make sure a few calls were placed to the local news stations that have 'consumer protection squads' and see if they will be willing to turn lose some bad press on them.
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