Stuff happens...
Sorry to hear about your loss...

Don't know if it makes you feel any better or not, but like so many have already noted, you really never can tell what will happen when you string up an older recurve. I was given a nifty 48" Pearson which I would love to play with, but I'm afraid to string it. If I worked up the nerve to string it, I'd probably be afraid to shoot it! Not only because it is old, it appears to be in good condition; but moreso because I have no clue about the bow's history. For all I know it spent 40 year hanging over top pop's mantle, basking in the glow of the fire...or it could be ready for action and have a dozen deerkills left in it. No way to tell.
I hope the shop was at least apologetic...and I hope you acquire yourself a new toy soon. Hunting with a recurve seems to satisfy people very deeply; my husband is about 98% traditional. Me, I'm the techie compound geek. Love those goodies! Must try the next new thing!
As for the ideas on who is liable for the damage...that's a touchy one. If I damage someone's equipment I either restore it to original condition or replace it. On the other side of that coin, the following disclaimer is posted in my shop, right above my bow press:
We reserve the right to refuse to service unsafe or faulty equipment. If your bow has been
dry-fired, modified, or damaged in any way it is
YOUR RESPONSIBILTY to inform us. Bows for service may be compressed in a bow press, drawn to full draw and tested for peak holding weight. By requesting service for your bow accept that BIG COAL RIVER ARCHERY cannot be held liable for any damages resulting from routine maintenance.
Does that sound a little harsh? Maybe so. If I felt I did something to damage a bow -- not something that exacerbated existing damages -- I would certainly make it right. Unfortunately for all of us, that sign is for the litigious-minded folks. Too many people are after the fabled "settlement."
Last season I took in an older Hoyt bow; the customer requested a new sight and said he'd pick it up tomorrow. My nephew, who was then 17, helps me out sometimes. He's my muscles...it really helps to have someone on hand who can draw 70#, brute loose those over-tightened screws, that sort of thing. I had offered to tune up the bow while installing the sight, the thing had cobwebs on it...so I told the nephew-apprentice to give it a shot of string wax, clean it up, look it over...routine stuff. After he gets it shined up a bit he drew the bow and WHAM!

it knocked him silly. The string snapped underneath the center serving. There was no obvious sign that the string was damaged whatsoever. After I made sure the nephew was okay I contacted the customer, who happens to be a State Trooper, and explained the situation. I offered to replace the string at no charge and told him although I was sorry it had happened at least it didn't happen to him while he was bearing down on a deer. (Or me, when I was backing it out of the press...) End of story, everyone's happy...wrong. This fella calls me at my residence at nearly ten o'clock that night, wants to hear the story all over again. So I tell it. He tells me he doesn't think I should have a "kid" messing with people's stuff, thought no one would touch it but me...blah, blah. First, this "kid" goes about 6'1" and plus 200# and is as eaten up with archery as anyone I know and second, the customer KNOWS who my help is. So I explained again the reason the "kid" was touching his bow, apologized again and again offered to have a custom string made for the bow, no charge. (I'd like to note here that I'd warned the customer about that string the season prior...and he opted not to act on my advice.) He huffed and puffed and all but insisted I come out to re-open my shop, so he could retrieve his bow. Said he didn't feel "SAFE" with it in my shop. I said, sure, I'll be there in 5 minutes and promptly sent my husband. When my husband arrived the customer was here at the shop, doing his very best to pick a fight with my nephew and father-in-law. Guess he was waiting on me and was awfully surprised to get "the big man" instead. It musn't be any fun trying to bully Anthony so he collected his bow, declined our gracious offer to repair said bow and left. He pulls my nephew over every chance he gets and gives the "kid" hell. Excellent use of authority, my tax dollars hard at work. Good thing the nephew's a good "kid." Nobody won in this situation. The customer has hard feelings and I do, too. His beef was with ME, not my nephew, and I offered to correct the issue, beyond what most shops would have. I guess he probably takes his cobwebby bow elsewhere now...and that's fine by me. Some folks couldn't get through this door with a handful of $50's and he's one of 'em.

Goes to show you can only satisfy the people who want satisfaction.
Good luck to you getting set back up with a recurve. You sound like a nice guy. Nice people rule. Mean people suck.
Michelle