related to the timing belt job. Camshafts do not break like this, especially on a bone stock TT. I would politely but firmly contact your dealer to see what their response is. As Spddracer says it will be hard to prove, but the dealer may do the right thing if you can get written opinions from other shops that could be used as "expert" testimony in a small claims court case.
ps. trying to restart it didn't cause any more damage. If oil was coming out the damage was already done.