Ray,
This wouldn't be an issue if Ford didn't deny warranty coverage these people. They go to court because of Ford not Cathy. Ford needs to prove why they denied coverage on the warranty that was provided on this motor. If they don't have a substantial reason to void a warranty then it needs to be honored otherwise its a Breach of Warranty which is illegal! To deliberately deny a warranty without sound reasons is bad faith and will constitute damages.
If they changed the oil once, maybe twice in 29,000 miles you could side with Ford, but it sounds like Cathy maintained the vehicle other than a slight extention on an interval. If oil changes were a problem we would have heard terms such as, sludge, oil passage narrowing, clogged oil pump screen and excessive deposits. Those phrases were not brought up by the dealer. In fact they mysteriously dumped a majority of the oil and changed their story.
I side with the fact that part of the problem is with the recommended 5w20 oil, but it could be anything.
Cathy how many oil changes performed on the vehicle?