Engine Oil Leaking problems of the 2004 Dodge Grand Caravan

We have had our van in for service and oil changes in the past. The engine had less than 40,000 miles and was using almost 4 quarts of oil in less than three months. The last time it was serviced, the dealer could not find any reason why it was using oil. They said to keep an eye on it by checking it frequently, and they could try to monitor it to see why we were loosing oil. We could always find small spots of oil in our driveway and on parking areas/garage floor. The dealer did check the vehicle and said they could not find any oil leaks. They did however find a leak in the transmission line, which did not explain why we were having to replace oil on a regular basis. We had just placed 4 quarts of oil in the van two days prior to the service appointment. The van was totaled in an automobile accident the next month, so we were not able to follow up on the oil leak problem but felt that we should report this problem since other Dodge caravan owners have had the same problem where they have low mileage on their vehicle, and oil loss for no known reason.

I had continually added oil every month starting after about 10,000 miles. I changed oil every 3-5,000 miles. Driving back from up north and I heard a ticking noise. I had checked the oil level before our trip on 8-3-07 and added 2 quarts of oil to bring it up to full. As we had the windows closed as the temp had fallen to chilly, I could no longer hear the noise until we were within mile of our home. It became louder and as we pulled into the driveway, it was very loud. I was going to bring it to a dealership to get it checked out the next day, but the van would not start. I had it towed to the closest dealer and they looked at it the next day and told me that the engine had blown. They told me to contact Chrysler as they would too. I did and they told me it was not going to be covered due to lack of maintenance. They wanted oil change records and I did some myself but had 3 from a local repair shop. They wanted 2 more and I could not supply these as I had done them myself. I did have a receipt for the oil I added in last July, but that was it. I have about 37,000-38,000 miles on the van. The dealership wants me to pay for the tear down of the engine even though I was told the first week that Chrysler had ok'd the tear down to find the problem. Now the dealership called me and wants me to pay for a tear down so they can look into why it broke. I told them , you already told me that you had the ok to do this and it should be already done. I went to the dealership and the van was on the hoist and was particularly disassembled. The dealership wants me to pay for the tear down and a new engine that will cost almost $5,000. I have it documented on at least one oil change that it had used 2 quarts of oil between changes. I had no leaks below my van so I was unaware that this engine was eating oil. Other than having to add some every month. More if you need it.