Spa Guts Their warranty is a scam Anaheim California

I purchased a complete spa guts replacement package 9 months ago with a 2 year warranty.

The motor bearing went bad and the company is denying it is a warrantly claim, saying that because there is rust on the motor housing it must have gotten wet and that voids the warranty.  The motor is installed in exactly the same location as the previous motor, it's under the hot tub with a rain shield.  The rust is surface rust because I live in a coastal area.   The prior motor is still going after 7 years - a long time for a coastal area (and I'm actually using it again now) I only bought a new motor because it came with the full package.  

My local repair man has checked the motor and agreed with me that the bearing is bad - it's obvious as soon as you walk into the yard from the noise.  The motor was installed completely per the instructions and in a protected location.

After I paid $107 to ship the defective motor back, they want to charge by another $320 to replace the motor they sold me which was defective.  Total scam - steer clear.  I will never buy from this company again  - there are other options online and local.