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2004 Honda CRV Clutch Replacement now more issues

I had a clutch replacement done on my 2004 Honda CRV EX at a local shop. The replacement was taking longer than anticipated because of rust accumulation. After I was told the replacement was near completed I received a phone call that there was a buzzing sound coming from the transmission that warranted taking out the transmission a second time to investigate the internal components and potential rebuild. Prior to the replacement being done I have never heard this sound and was told my the tow truck driver he hadn’t heard the sound either. I had another transmission specialist look at the vehicle and he pointed out that the gear fluid was near empty, and that there were fresh welds directly above the point where the buzzing sound was loudest. He concluded they may have dropped the transmission or potentially dropped something within the transmission while making a weld.
Three separate transmission specialists have said it is very likely the result of the clutch replacement, and potentially the pilot or throwout bearings. I need advice as to how I should approach this issue as I have already invested $1500 in labor and clutch replacement and would like to avoid breaking the bank.

the car makes a buzz sound when idle specifically when the clutch is engaged (clutch pedal not depressed) and the sound stops when disengaged also when in reverse and 5th gear.

You need to ask the question: Who broke my transmission housing? The rust statement sounds like a delay tactic. If the mechanic or tow truck driver will not answer, it may be time for you to go to small claims court. Document everything including times, dates, phone calls, names and prices.

I agree with Wha who on this, but will add that you may have to have another shop pull the tranny for a full evaluation. Also, be there when he does the work and ask him if you can take clear photos of whatever he finds, including the fresh welds. It may cost you a bit more for shop time, and it will cost you more up front, but before going to court you’ll need to know the damages, and that cannot be determined without a thorough evaluation.

The damage is obvious enough, the trans case was cracked and welded, it was found to be low on fluid and makes noise. A belabored investigation might find a bad bearing, bearings or gear tooth damage due to oil starvation but would not erase doubt about the integrity of the remainder of the transmission as it may have been run with low fluid in addition to potential internal damage due to the case fracture. It’s very doubtful that a complete repair would cost less than a good scrapyard transmission. The OP might bear in mind that the car’s transmission was used and it is fair to replace it with a good used transmission. The OP is owed a replacement transmission with an uncracked case.

PS, it might be pointed out that an aluminum trans case as a Honda might have will have some ductility prior to fracturing. A visual inspection might find visible damage but there is the possibility of invisible case distortion and consequent misalignment of internal parts that would be found only if a mechanic had the part drawing and the needed measuring equipment. This can help to make more doubt about the use of this transmission, if repaired.

You make a good point Whawho.