Power steering gear replacement

[David Small]

My 4 year old ML320 (60,000km) had a noise in the power steering and a slight oil leak. My dealer could not take it in right away, so they added a bit of oil and gave me an appointment for 10 days later. Three days later it was making noise again, and they added a bit more oil and sent me on my way. Two days later it was making much more noise and they kept the car -- then informed me that the power steering gear was damaged and needed replacement (for 3,300 Euros -- i.e., US$4,393!).

The dealer is denying any responsibility -- He claims that the delay and continued use could not have caused the damage -- that they would have been required to replace the power steering gear anyway even if they had taken it in the first day. I would like to know if that is correct. Was there a significant chance, had they checked the problem the first day, that the slight leak of power steering oil could have been caused by something minor and could have been fixed without replacing the unit? The dealer is disclaiming responsibility.

If they are misleading me, I am prepared to pursue my rights.