CSC failure covered under warranty?

Pearl09370Z

Salve cylinder blew two days ago with no warning, had to be towed to the dealership. They called me in the morning and told me it drenched the clutch in fluid and the total for the repair is $1656 and that it is not covered because the clutch is a wear item. I went ahead and had them do it and immediately called Nissan consumer affairs after reading the transmission section of the warranty which states:
Transmission and Transaxle
"Case and all internal parts, torque converter and converter housing, automatic transmission control module, transfer case and all internal parts, seal and gaskets, clutch cover and housing and electronic transmission controls".

The car is an 09 with 43k and is under power train warranty until January 2015, I lodged a complaint with Nissan and alleged that the local dealer,Sutherlin Nissan Ft Myers, FL is not honoring the warranty.