unless you can prove that there had been previous codes stored in that car with that same cyl 3 misfire, and that they knew and cleared it intentionally, and that they knew there was internal damage and 100% mislead you to thinking there was nothing wrong with this car and the previous owner is a master mechanic and has been through the engine and its perfect with no issues at all or any trouble codes of any kind....your wasting your time. Basically it would come down to a battle of if they knew before, and if the car ran fine with no knocks or intentional coverups (ie 15w40 oil in it) then it will go no where fast. Thats a very fine subject that normally favors the seller no matter what. Your best bet is to pick up a used L36 for 400 to 600 and chock up your pride, and mod in the process. My sis is a Paralegal and i've been through this same thing in the past man...and i'm sorry
Thanks man, your the second person to advise me to get another used engine, so I think thats what I will do. And thanks for the legal advice also.