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A few years ago, I bought a used a F-150 with a large turbocharged diesel engine on it and the turbo went out, so I got a mechanic to replace it.

Now, the turbo went out again and when the mechanic replaced it, they took it out for a test drive. When they took it out to test it, the engine ran away and got completely melted. There was oil in the intake from either the old or the new turbocharger and caused a diesel runaway.

They are asking 12,000 to fix it. Are they liable to the damages they did to my truck, or do I have to pay for it?

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    For $12,000, it's worth threatening to go to court IMO. Regardless of whether the oil got there from the old or new turbo, they should have checked it before they trashed your engine. But the real question is, do you trust these comedians to do the job right the second time, even if you can make them do it for free? – alephzero Nov 30 '18 at 20:08
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    I suggest that residual oil left in the intake from the old turbocharger that was removed and replaced would not be enough fuel to cause a runaway of sufficient magnitude to destroy the engine. It sure seems like a new fuel source (e.g.an oil leak from the new turbocharger) was the more likely cause of the catastrophic runaway. If that is the case then I would blame the mechanic and ask for relief. – Jimmy Fix-it Nov 30 '18 at 20:11
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They either didn't clean the old oil or there was a leak from the new charger, either way itis their JOB to make sure there are no leaks and old oil left. I would threaten them to go to court and ask them to pay the damage, I wouldn't trust them to do the new repairs even for free. But if that's only way to get your car repaired for free maybe you should.

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