Yes he kept a camera in wet conditions in a damp backpack in temperatures calculated to induce condensation. Now that will get moisture inside the camera all over. And it was damaged so much that the whole internals, including the sensor needed to be replaced. How wet do you need for that? And then he tried to claim it under warrantee, where it is clearly an insurance matter.
He is a nice guy and he tried to treat the camera as best he knew, but his luck ran out. The Dutch Leica importer offered him a new camera for the price of the repair when Leica refused warrantee, and even now Leica is looking to see if they can accomodate him in any way.
I guess the end of the story will be that his insurance will pay up.