Engine Cooling System problems of the 1998 Toyota RAV4

On July 20th, 2002 my wife took her 1998 Toyota Rav4 in to have a recommended flushing of her oil, transmission, cooling system. A complete tune up of the motor. At this time she told the service person of a smoke discharge at start up along with a slight noise. The service person said it was probally the rubber valve seats and my wife didnt have to worry right away. In April 2003, after all the schedualed service maintaince was performed, my wife noticed the smoke was getting worse and the noise a little worse so she took it in to have the valve seats replaced. The next day the service dept. Called her and said the motor was shot. They said it was oil pump failure and it would be over $4,000. 00 for a new motor. When we asked to if they would rebuild the old motor, the head of the service dept. Said they couldnt because there was too much jell in the motor. He said he would get ahold of our warrenty company to submit a claim for a new motor due to oil pump failure. They sent out their inspector, he said it wasnt the oil pump and our claim was denied we had him come out again on a appeal the service dept. In his words offered him no proof of the oil pump failure and again we were denied. At the urgeing of the head of the service dept. At bev smith Toyota we retained a lawyer with the promise of all the help we needed from the service dept. Needless to say we wasted our money on the lawyer. Were not allowed to take pictures of our motor, we cant have our motor even that we had no core trade for the second hand motor they put back in the Rav4 which we paid almost $3,000. 00 for. Our old motor is off limits to us, the head of bev smith's service wont return our calls and our lawyer fees are out the window because the lawyer cant get anyware with the warrenty company.