"...and then if it is the garage's fault I suppose they owe me a new engine?"
I would think that if it were determined to be the garage's fault (not an easy thing to prove), then they would owe you an engine with 236,000 miles, NOT a new engine.
I certainly understand the feeling that you have been screwed in this process, and that the bad luck (or mechanic's incompetence) seems unfair, but this really shows why Volvos don't always make the best used cars. The cost of repair is so high that it is causing a large financial burden on you. The repairs can easily exceed the value of the car.
Maybe you should cut your losses and get a different car. If you spend more than $50 or $100 trying to pin the blame on the shop, you are just throwing good money after bad, and it sounds like you can't afford to be doing that. I believe that your honest chances of recouping anything are slim to none. Sorry.
Good luck
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