I don't see any info where it has yet been determined what exactly is wrong with the trans.
Just because a part fails, does not mean that it is automatically covered by any warranty.
According to the warranty link previously provided, a repair is covered if:
The Lifetime Powertrain Limited Warranty covers the cost of all parts and labor needed to repair a powertrain component listed in section 2.4.E below
that is defective in workmanship and materials.
If it goes that far, someone would have to tear down the transmission and inspect it to determine what has failed, and why, and guess who is going to be doing the teardown and inspection, the dealer.
They might determine that improper fluid was used in the trans, or that it wasn't properly maintained.
Also, reading back through some posts in this thread that I found, some others that have had warranty issues were bought out of the warranty because repair parts were no longer available. If parts are no longer available, then they can't perform under the terms of the contract to repair it, then your only recourse would be to accept a settlement.
Still have our 2008 GC SXT with lifetime powertrain, now at 162k miles. We have used the warranty for a new torque converter, transmission rebuild and CV shaft with no issues from the dealer. Didn't even charge the deductible. We did the 5 and 10 year inspections. I know I received a...
www.chryslerminivan.net
Also, when lawyers get involved, they can throw up all kinds of roadblocks and hurdles. Again, you may have to prove every maintenance item that you ever did to it, and that it conforms to the warranty schedule in the Owner's Manual because the schedule is the minimum needed to maintain the vehicle.
I wouldn't be so quick to dismiss a settlement. I lost a case against a national franchise shop that performed faulty repairs to my PT. I had an extended warranty on it, and this shop replaced a lot of parts under the warranty. But what I didn't know, until much later, was that they were billing the warranty company for genuine OEM parts, but they were installing much cheaper after-market parts on my car.
I took them to court and lost because the court determined that this shop had not defrauded me, by installing the cheaper parts, but rather they had defrauded the warranty company, so if anyone would or could sue the shop, it would have to be the warranty company and they weren't interested in suing the shop because as far as they were concerned, they fulfilled their obligations under my contract by paying for any covered repairs.
But shortly before this case was scheduled to go to trial, I was offered a settlement, and I declined it as I wanted to go for broke and get everything that I felt I had coming to me. But had I accepted their offer, I would have least gotten something, rather than nothing.
But a couple of years after my lawsuit, that shop went out of business, so that is some consolation to me.