I bought a used Forester, from a mechanic shop with a verbal warranty for 2 years. Covers engine and transmission. Transmission has to be replaced, and I'm being told it's not covered.

He initially thought it was something attached (not sure what) and that leaks weren't covered. But now that he's dropped the transmission, he's saying it's leaking out of I think a crack in the transmission case. And since the internal parts didn't break warranty doesn't apply.

Am I being fucked over? I don't see how the entire transmission replacement isn't covered under a transmission warranty. USA