Three months ago as part of a repair to my Mz3i 2.0l w/ATX which was rear ended, the front left axle, control arm, outer tie rod, and strut were replaced. The impact pushed the car into a tree striking the left front wheel well causing this damage. Yesterday, my wife noticed the "AT" light come on just as she was pulling into work. Also, CEL was lit. The code ended up something like "4th gear ratio out of spec." The car was towed to the dealer who did the original repair. While on the lift, the tech showed me where the drive shaft had pulled out of the transmission causing the the fluid to completely drain out. The seal was shot. This is 90 days and about 3k miles after the original repair.
Guess what? The dealer as of yet doesn't want to take responsibility for a warranty repair due to faulty removal/installation. They state the axle popped out due to unseen damage from the original accident.
The insurance company is deciding whether to send someone out to evaluate and see if they will pay for a supplemental claim. The tech told me (before the bosses showed up) that the axle was not properly installed causing the failure now. He was not the original tech who did the repair.
Questions. What would cause this axle to fail in such a manner? I have looked at an online shop manual and it looks as if there is only a retaining clip involved in connecting the axle to the transmission. Any other ideas? One way or another, the ATX and axle are shot, I am without my car for probably several weeks, and everybody is trying to shift the blame.
This is not a request on how to deal with dealerships or insurance companies but rather what could have caused to mechanical failure. Next call is to a lawyer just for advice. I am documenting all contacts.
All replies are appreciated.
Guess what? The dealer as of yet doesn't want to take responsibility for a warranty repair due to faulty removal/installation. They state the axle popped out due to unseen damage from the original accident.

Questions. What would cause this axle to fail in such a manner? I have looked at an online shop manual and it looks as if there is only a retaining clip involved in connecting the axle to the transmission. Any other ideas? One way or another, the ATX and axle are shot, I am without my car for probably several weeks, and everybody is trying to shift the blame.
This is not a request on how to deal with dealerships or insurance companies but rather what could have caused to mechanical failure. Next call is to a lawyer just for advice. I am documenting all contacts.

All replies are appreciated.