I have mixed feelings about this thread and some of the viewpoints being made, as I truly am familiar with both sides. As someone who takes customer service seriously, I would put myself in the shoes of the customer and probably want to try and do something additional for them to ease their pain. Then on the flip side, I can see where that is a slippery slope, for many of the reasons Maryland Speed discussed which are valid points, and policies are in place for a reason.
I don't think Magnuson technically did anything wrong in this situation,
that being said I would have viewed it as an opportunity to make a customer extremely happy who wants to talk about how we helped them out by going above and beyond our policy. Sometimes I view circumstances like this as an opportunity for the most influential advertising available, word of mouth. Like I said, I don't feel they did anything wrong, I just would have chosen to optimize this circumstance and make it into some positive marketing at a relatively low cost by maybe helping out with some labor cost. In the end they followed their policy which you agreed to, but for you OP, of course the situation is not a fun one and I hope it all worked out ok for you.
That's just my .02 cents, probably only worth a penny though
