Relacement iphone also damaged

I gave my iPhone in on 28 March 2016 for water damage . After 3 weeks I got a quote for R 4330.00 that I first have to pay and they will give me a replacement iphone 6 .. That I did and on 20 April I went to pick up my phone. After all the paperwork I was told to come back in an hour because they have to download software... That I did and shockingly I was told they cant download anything cause the replacement phone is also \dead\". and I have to book it in also and it will be sent back... all this after 3 weeks and R 4330.00 out of pocket for nothing... they also could not say how long it will take now...... all I want is a new phone and compensation for their poor service. ridiculous but well expected."