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Faulty fan replacement responsibility?

Hi all. Has anybody else had an issue with installing a wall mounted 4" extractor fan, only to find after 9 months the customer has contacted me to say it is now leaking an oily substance down the wall and ruined the paintwork.
I am happy to replace the fan free of charge as it is within the guarantee, but he wants to make a claim for the damaged paintwork.
My question is, am I liable to pay for the repairs? even tho I installed the fan according to the manufacturers instructions, if so, how do I go about sorting it? Do I contact the fan supplier to try to get them to cough up? (Unlikey they would), or do I go through my Public Liability Insurance? (which would bump up my premium), Do I just pay the customer out of my pocket to keep him happy? Or do I tell him I'm not liable and It's not my problem?
I always try to keep customers happy, but if it means making me hundreds of pounds out of pocket, I'm happy to cut all ties with said customer and walk away.
Sensible serious answers would be much appreciated as I've never had this issue in 30 years of trading. Thanks.
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