Ok, you got me on the "Brakes" yesterday wasn’t a good day.

First off, i would like to thank everyone for his or her feedback. It gave me the ammo i needed to put up a good case against them

Here's what happened, They informed me the steel "BRAKE" line (lol), had been " rubbing against a steel grommet that was attached to a power steering line" that was buried within the chassis i have no idea what this means but this is exactly, verbatim what they said. I asked for the damaged brake line and I have it the trunk. There is indeed a slight tear in the steel line on one corner. They gave me a 10% discount and ate the towing fee, $100. I paid $1100 plus the rental fee's $265. The service manger understood my argument but said he had he's hands tied and couldn’t to any better. They washed my car and I was off.
If anyone wants a copy of faxed copy of the bill PM me

Answers for some of the questions:
1. Has the vehicle in question EVER had any body work or after-market work performed in the area where the damage is? The front right fender was scratched and painted. Very minor.

2. Exactly where is the line damaged? If it's a line that runs from the front all the way to the rear, it may be partially inaccessible but that doesn't mean the damage was in this area. (BTW, don't expect any MB dealer to simply replace the damaged section of line using compression or flared fittings. It's a liability issue. ).
The line was buried in the chassis (SP); it was a steel pre-formed line with fittings on each end. They claim 13 hours of labor

Was the car always serviced at MB? Yes, they checked the history and verified. No one but a MB tech has serviced this car
-You can still downshift and use the emergency brake!
Yes you can, and that’s what I did to avoid the NYC sanation truck that was in my lane slowing down. I drove around him on a one way lane, thank god it was a straightaway and no one was in the other lane. The EM Brakes saved my A**!

If anyone wants to take a look at the bill PM me, i can Fax it over.

And thank you again, you all helped a great deal!