I never dealt with the dealer, I went straight to GM. Since it was out of warranty, they never attempted any repairs, and they have actually been very helpful in my case that’s why I went straight to GM.
UPDATE… I have reached a resolution with GM. They agreed to pay for the replacement of the transfer case minus a $100 deductable.
It took a phone call to my wife’s uncle who works in the Powertrain Division. He contacted someone who reviewed the case and couldn’t believe how we were treated by some of the customer service reps.
The sad part of this is that it took a phone call to a relative to get action, most of the people who have problems like this don’t have a relative to call to act on their behalf.