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Hello,Thank you for the information and your question. Yes, if Safeway is refusing to process a claim from you, then you can file a small claims court action against them for the damages to your car. You will need to have a mechanic who is willing to testify that the damages to your engine were a direct result of water in gasoline and you will also have to establish when you purchased the gas from Safeway by way of a receipt to credit card charge or debit. The closer in time the damage occurred to when you got gas, the stronger your case. You can find more information on filing a small claims court action in Washington by going to: http://www.courts.wa.gov/newsinfo/resources/?fa=newsinfo_jury.scc&altMenu=smalPlease let me know if you need any clarification. I would be glad to assist you further if I can.