Warranty claim denied

Has anyone had their warranty claim denied? A friend of mine has 60k miles on his car with the 100k bumper to bumper and power train warranty. He has a blown head gasket. Hyundai currently has the car completely torn down and has confirmed blown head gasket but will not warranty the replacement. So now what? He has a car in pieces and I’m sure they aren’t just going to put it back together and give it back to him with the old blown head gasket. What is his next option since they won’t fulfill the warranty?