You don't say how long after you got the baggage you complained to SWA. You initially had cause to suspect damage at baggage claim but a week later you discover the actual damage. I presume it is some time after that you reported the damage.
I'm not sure of SWA's rules, but it would seem to me that if you were put on enquiry as you received the case that something was not right, you should have then reported it to the agent in the baggage claim room, or if there was none there, any SWA agent as you came out of baggage claim. and as soon as possible check it out to see the extent of the damage.
The airline has to protect itself from passengers who may wish to claim this and that was missing or this and that was damaged long after the passenger received his bags. Hence they place time limits on when they will receive complaints after you receive the bag without complaint.
I'm not aware of any 4 hour rule, but for some airlines the rule is that you must report any loss or damage immediately upon discovering it, and not more than 7 days from receiving the case.
I have not seen in your post anything that can be called extenuating circumstances and you have not said why it took you a week to get around to checking the case.
If your first report to SWA is more than 7 days after getting the case, the DOT is not going to assist you, as you have probably realized yourself.
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