I took it back to the dealer for a neutral opinion. This is what they came back with pictures / video*
"I had my technician look at the vehicle this morning and during the inspection we removed the lower oil pan to inspect and obviously found metal in the pan from engine failure. Also, we found the oil pickup tube for the oil pump is missing which is what starved the engine of oil and caused the engine to fail. The top of the oil level senor was also smashed which is what was causing the warning on the dash to display"

Glad they were able to find the smoking gun. I have asked for compensation from the repair shop. Lets see what they say.

Any pointers or experience to make sure they are liable and end up footing the 28K dealer estimate?