Sounds like you've already paid the dealer for the $2,150.00 in labor. :shocked: If so, then even if Kioti eventually pays the entire claim under warranty, the effect is that you've extended credit to the dealer in the first instance, and to Kioti indirectly. That's an added pre-condition to Kioti's obligations that is not stated in the written warranty. At the least, there is a cost to you in that, but depending on the financial circumstances of the tractor owner at the time, it could actually be a real roadblock to getting the repairs done in the first place!
A couple of additional thoughts, since you mention that you would plan to file a lawsuit if Kioti disallows the warranty claim. First, there is an arbitration clause in the Kioti warranty. I would expect Kioti (and any manufacturer, for that matter) to try to rely on that if you did go to court, presumably small claims court in this case. Secondly, since you were told that only the servicing dealer can submit the warranty claim, and especially if you've already paid the dealer, seems to me the dealer will be a "necessary and indispensable party" to the suit. If so, you'd probably need to name the dealer as a co-defendant. I expect Kioti will do the right thing and cover the submitted claim in full, but if they don't (and you already may intend to do this), I would sure talk with a local attorney about your options before going to the courthouse. :scratchchin:
My personal experience with warranty work on my NX has been very limited, but definitely dramatic, and very good. At around 225 hrs, a freak failure of a bearing cap bolt caused the engine to throw a rod out the starter motor port just as the tech was pulling the tractor into the service bay to diagnose the knock.

Kioti asked for photos, and within four days after getting them a new engine was sitting on a pallet in the service bay waiting to be installed. No expense to me, other than haul to and from the dealer.