While I am happy to support this law suit, knowing full well these false positives do happen, I have personally had a differant experience when it comes to this topic.
I will say one thing before hand for one of the other posters who sounds more like an arrogant poser, that being a DICK, will get you nowhere. However, trying another tactic may very well get you another phone.
Last year sometime before the 3Gs came out, I had a pretty bad cold, fever, hot & cold sweats, in bed for a few days and under the influence of a a plethora of cold medications etc.
I woke up at some point drenched in sweat, changed and threw everything into the washer.
I forgot my phone was in the pajama pocket.
Talk about immersion, well, I would say for several cycles. When I realized what had happened obviously was too late. When I retrieved the phone, well, I thought I was screwed. I knew at the time they did not have this new policy in force and it was going to cost me $500.00 to replace, which was not exactly in the budget at the time, but I had to get a phone and sent my dear wife off to ATT to get a replacement. They gave you something off but it was a fortune, and I did not have square trade!
Anyway, I tried to dry the phone, blow dryer, radiator, it seemed totally gone, nothing, no power, no sign of life, dead. I thought I'm going to have to eat this one for sure.
Then about a week or so passed and for whatever reason I turned it on, and to my utter astonishment, it began to power up, screen came on, there were still signs of some dampness under the screen but it was coming alive.
I used the blow dryer some more, the dampness eventually disappeared, and the phone miraculously appeared to be working. I tried WIFI, working, swapped out SIm cards, working, tried several programs, all working. I couldn't believe it.
Now I had two phones. Sometime after that I decided to see if I could get a replacement, just in case there was some internal damage that might affect it down the line. I called in stating that I was having really bad reception, got an RMA, send it in, and then got this email about the immersion indicators going off and that the phone did not qualify for replacement because these indicators had gone off. I had not heard of these before, and thought, well, this is a pretty good trick Apple has come up with to protect themselves against these kinds of claims but how can they be absolutely certain that it was in fact from a total immersion and not from say sweat, or temperature differentials, how can they really be certain.
And the answer is they can't and they know it.
And they will deny your warranty,
you appeal the decision, and make a concerted effort to debate until proverbial cows come home this with this higher level supervisor, and that you present a hands down Oscar winning performance convincing this person that there has been a grievous error in your case, and that your phone has never been anywhere near a liquid substance. They will usually send you a replacement if you put in that much effort. No guarantees, in this but using a logical insistent, polite, and firm attitude will get you so much further than being an obstinate angry fool.
In my case obviously I stretched the truth a tad, yeah, so what!
After speaking to the highest level supervisor who had the authority to override the decision I did get a replacement phone after sending in a phone that was working but whose immersion indicators had all been obviously tripped.
Don't give up, be persistent, find that person at Apple who is going to help you out of the ifx your in, but don't be a jerk, that will get you nowhere, and fast.