I agree that you should not have to pay for his error. We had a similar issue when we lived in our condo. Since we lived near water, the front doors would warp and the association would have the doors replaced. When it came to our door, the door guy was an idiot and cut it too short by several inches. When we complained, he tried to cover it with the sweep, but it was still too short and then he said he would have to charge us for a new door. We went to the HOA board and they had him replace it with a new door - no extra charge.
As far as the quilt goes, if he had been honest up front, I would have suggested bartering the cost of goods and labor for the quilt against his costs and labor, but not with this behavior. Good luck.