PQ, in the interest of a debate free New Year's Eve, I think we can both agree the owner needs to rethink his risk management strategy. He may have THOUGHT he had reasonably secured the customer's car, but he has discovered otherwise.
He had two choices from the beginning: make it right and lose some money out of his pocket, or try to win on legalities and potentially lose much more (reputation).
We'll see how it plays out.
Happy New Year!
Padre