Hello! Could you tell me one thing please. Should we change tenses if we use reported speech in reported speech.
For example:
My friend: “The guys said that that wasn’t a warranty case, so I had to pay them for fixing it”
1. My friend told me that the guys had said that that hadn’t been a warranty case, so he had had to pay them for fixing it.
2. My friend told me that the guys said that that wasn’t a warranty case, so he had had to pay them for fixing it.
Which one is correct? Or, are there another correct option?