Oil Change Catastrophe

So, I've owned my 2012 Subaru Forester for about 5 months and purchased from a local dealer. The dealer offers free oil changes as long as you own the car. So, my wife brings the car in for an oil change and notices something wrong when she drives it home. We take it to our local, reliable mechanic and very quickly observed that they did the following wrong:
•instead of draining the oil, they completely drained the transmission fluid
•thinking the oil was empty, they filled it with four MORE quarts of oil.
My mechanic is telling me that my transmission life will potentially be shortened, I'll likely need new catalytic converters soon along with other potential internal engine damage. The dealer is saying they'll make it right but also staying that if nothing is wrong now, then there won't be in the future. Do I demand a new engine? Make them buy the car back? Install a new engine?
Help!
•instead of draining the oil, they completely drained the transmission fluid
•thinking the oil was empty, they filled it with four MORE quarts of oil.
My mechanic is telling me that my transmission life will potentially be shortened, I'll likely need new catalytic converters soon along with other potential internal engine damage. The dealer is saying they'll make it right but also staying that if nothing is wrong now, then there won't be in the future. Do I demand a new engine? Make them buy the car back? Install a new engine?
Help!
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Comments
I would ask them for an extended engine and transmission warranty in writing.
Was this a Subaru dealer?
I'm thinking that anything you get out of this will be strictly a goodwill gesture on the dealer's part.