A friend of mine got an trade offer for his car, both cars unknown, and they both inspected vehicles themselves and agreed to do the trade. the owner of the vehicle who offered to trade had just put the car in his name and was recieving the title in the mail, and offered my friend some cash because he was trading the car with no title, until he got in in the mail and would give it to my friend. but still gave him registration and cert. of title.
They both trade that night my friend gave him the title to the car he had and he signed his name on it(dumb move) i know but anyways, the person my friend was traded his car all the way home no problem everything runs fine.
a week later he gets the title and then informs my friend that the car he gave him had a rodknock in it that there was no oil in the motor, my friend honestly doesnt know how this could happen because it ran perfectly fine the whole time he had the car and all of a sudden when he gives the car away the motor gets a rodknock?!

even tho this happened well after he traded and is his responsibility to check the car out himself. he says he wont give up the title to my friend as he said he would until the car is fixed out of my friends expense. he said if nothing is done he will file lawsuit against my friend. and my friend says if he doesnt get the title he will sue for the title.
Should my friend sue for the title?
And is it my friends responsibility to pay for the motor that was driven by someone else when the rodknock occured?
let me know what you guys think!