it boils down to my largest pet-peeve: people not accepting responsibility for their own actions and either looking to point the finger at someone else or looking for someone else to foot the bill. do not, under any circumstances, accept these actions, as he is responsible for the car - he's just trying to get you to pay for it. there isn't even any need for you to prove there was nothing wrong with the car, as he has no leg to stand on. if he bought a hunk of ****, it's still his. he completed the transaction (or $130 shy of doing so) and he filed for title. there isn't any action more damning to him than filing for title - that means he accepts the deal and the car is his.
take him to court and teach him to take responsibility for his actions. even if you were shady (not saying you are) he still paid you, took the car and filed for title. deal was done, as far as you were concerned, and there was no contract (wherein there might've been a clause) or cause for him to stop payment because the car won't start.
allow me to reiterate a very important point: do not, under any circumstances, accept these actions, as he is responsible for the car - he's just trying to get you to pay for it.
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JSFBOA
Save a life.
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