That is BS! I would continue fighting that. Don't listen to what the 1st level manager says. Escalate it as high up the chain as you can. The first few levels of management don't have as much power. Also, contact the company who sent it. Maybe they have some pull. They should be responsible too.

There's been a few times where I have ordered expensive things and UPS just drops it off on my front porch or at a neighbor I don't know's house.

Once, I had a Candlelite party, so I was expecting about $500 in candles to come to my house...the box said 'Candles, keep out of heat" right on it. They dropped it off on my doorstep Gosh knows when. By the time I got home from work at 6pm, it'd been almost 100 degrees all day, the candles looked horrible. I called Candlelite and told them that they were the ones that shipped it that way, so I was not going to be held responsible. Candlelite dealt with UPS, and UPS covered the damaged candles. I believe the package was insured. Was yours an insured package?