I had re-manufactured motor installed about 2800.

This is too common and it has happened to all of us sooner or later. It's called "double-gasketing" and is a result of the old filter gasket sticking to the engine and not being noticed. That is the mechanic's fault, not Fram's. The pressure pushes it out and you have a major leak. I doubt you'll have any luck with a claim because you had warnings something was wrong. The low oil pressure light would have turned on and you would have had plenty of time to stop the engine before serious damage occurred. The engine will not seize up instantly either. I've done this to my own cars, and after I clean up the mess, I just removed that overlooked second gasket, filled the oil, and drove away.

1.5 miles is way too long to keep driving. By that time all the oil was pumped out onto the ground. It's critical enough to shift to neutral, turn the ignition switch off, and coast down the road without power steering.

If the filter was not double-gasketed or loose, I've never seen one fail except a few that exploded due to a stuck pressure relief valve in the oil pump, but that doesn't mean it can't happen. At any rate, I suspect you're looking at an engine repair, not a total engine replacement or rebuild. The bearings and pistons are what will be damaged, not the cylinder heads and valves, and most likely not the camshaft and oil pump.