Brake Disc Caliper problems of the 2007 Nissan Pathfinder

At 33,392 miles, I went to have my brakes inspected at my local service shop due to a slight squeaking when in reverse. The outside surface of the rotors were smooth so I thought it was just brake dust build up. Upon inspection at the shop, the inside surface of both front rotors were badly rusted and the brake pad that presses against the inside surfaces were partially gouged. Both rotors could not be resurfaced due to the extensive rust and required replacement. And even though the outer pads were still an ok thickness and the outer rotor surface was smooth, they all needed replacement due to the badly rusted rotors! after taking the parts to my Nissan dealer to show them the rusted rotor surfaces, they suspected that the inside-caliper sliding pins had rusted inhibiting the pad from contacting the inside rotor surface, but still wouldn't pay for my replacement since "rust" wasn't covered! the kicker is that the brakes were inspected during a "complimentary multi-point check" only one year prior with no problem reported. Considering I drive the vehicle every day to work, if the calipers were sliding and grabbing the rotors properly there should have been no rust build up at all. But apparently the inside brake pads were not making contact with the rotor surface and could have resulted in a dangerous situation had I needed to brake hard in an emergency. I still have all damaged parts, receipts, and paperwork (and pictures of all too) for anyone wishing to inspect them. Check it out before someone gets hurt!.