RECALL 162 HYUNDAY DEALERSHIP NOT PAYING FOR MY ENGINE REPLACEMENT

My Hyundai sonata 2013 with 116,000 stop
running while I was driving I brought it to the
Hyundai dealership they said I have a recall for my
engine inspection possibly you needed to be
replaced it took them 4 days let me know that I
need an engine replacement they do not offer me
no loaner car they said to me that they cannot give
me a loaner for a car because they haven't done a
diagnostic and if I want a diagnostic to be done
that I would need to pay $225 after 4 days they
finally did a diagnostic and said that my engine
bearing broke off cause the engine to seized and
that I would need my engine to be replaced. but
that the warranty don't cover it. I asked why and
they said because my car had no oil and that the
oil that it had was not the right kind of oil. They
won't do any repairs and if I want my Vehicle back I
have to pay 225$ for the diagnostic.  Any
suggestions on how to handle this situation?  Is
been 2 weeks and my car is sitting at SAN
LEANDRO CA HYUNDAY/NISSAN DEALERSHIP
SERVICE..