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Was it a head gasket or an intake manifold gasket? If it's manifold, I honestly can't see what the shop could have done that would cause it to throw a rod. They shouldn't have been dicking around in that part of the motor. If it's a head gasket, then yeah, they probably busted it.
As for BBB, you can report them all you want, but it won't do much good. Companies pay the BBB to be members, the advantage to which is that the company gets to put the BBB logo in their window. People see it and assume it's a good company. The BBB has no actual enforcement power, and in fact has no incentive to nail a shop for one or two violations because if they kick the shop out, the shop stops sending the BBB a check.
Is the shop a AAA certified shop? That actually may carry more weight as many AAA customers will ONLY go to a AAA certified shop. If so, call up AAA and complain to them.
Failing all that, you can take him to court, but you'll want to have a certified mechanic to testify for you that the shop could have caused the damage - otherwise it's your word against the shop's. Judges rarely know anything about cars.
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