I have edited this to show the blower motor CONTROL MODULE failed, rather than the motor. Thanks to 07XKJaguar for asking the question that caused me to actually read the service invoice.

 

Pete,
Did you have the dealer check the possible drain blockage as a possible result of the duckbill being stopped-up? Or was the dampness you found near the blower housing a result of the blower motor stopping due to the control module failure? I assume you are able to see AC condensation dripping under your car now when the AC is running.

 

I had the same exact problem - blower motor quit; everything else seemed ok. Happened on a hot day also.

The control module failure is known issue (at least on the x350). They redesigned the part so that the cooling fins are slightly larger and this allows the resistor to run cooler. Overheating is why the control module blows. It's such a common issue that the dealer orders extra parts at the start of every "summer" here in NorCal. Your $700 quote is about $75 more than my dealer quoted.

It can be a diy job, parts alone are about $250. Depends on how handy you feel. It's more complex than changing the air filter or light bulbs but less than doing a set of brakes.

Good luck.

 

Interesting discussion. My AC stopped working on the way back from a trip to a ski resort in the Sierras of California. It was working when I arrived but at some point on the way home I noticed it wasn't blowing anymore, hot or cold. This is leading me to suspect that maybe the water in the drain plug was frozen solid over the couple of days the car was sitting. When I started the 5 hour drive home, I remember turning on the heater and defrost. Shortly after the drive started, maybe an hour or so, I had no more blower. I think it could be the control module you guys are talking about. Could it have shorted out from a backup of water because the drain plug was iced shut?

 

I guess it is possible that the drain froze, but it would have thawed pretty quickly because it's right on top of the transmission. That's a pretty warm spot.

It's more likely that the usual drain-blockage problem has occurred, but you haven't noticed it. Unless you have regular front seat passengers to alert you to the leakage, you might not know, particularly if there isn't a lot of water or it doesn't accumulate often.