Sometimes there really are two sides to a story. All of this seems, from what we have been told, to centre around the meaning of a 'panel.' It's far from clear that the dealer has done anything wrong, and all this relentless dealer bashing can become quite unpleasant.
I don't think this should ever have been put before a forum, because, frankly, we are no position to judge . Most dealers are fair, it's in their interests to be so. If you are convinced you are in the right, take the earlier advice and go to the small claims court....just be sure you do have a good case......