I put this concern to the shop, and was told that today’s oil pans aren’t as strong as they once were, often made of aluminum.
That answer is complete and unadulterated B.S. I don’t care how flimsy your oil pan is. If they replaced the soft aluminum crush washer and used a torque wrench as they should have, this should never have happened.
I would insist they replace the pan, at their cost, and then I would never go back.
Actually, that price for replacing an oil pan seems pretty reasonable to me (but I still don’t think you should have to pay it). You should see the prices on vehicles where they have to remove the engine to replace the pan.
If they don’t come around, and you have the time, I would have it repaired elsewhere and take them to small claims court. You’ve been wronged, my friend.