a few issues

It does sound like the axle is bent.
Is the trailer weight 4250 or is that the axle weight? Do you use a wdh, that increases trailer axle load, about 100 lbs, maybe a bit more.

If you have not overloaded it or hit some big potholes or curbs the fix should be on them. If some negative camber is considered normal then ask them for the max acceptable spec on that. At least you've raised a claim, make sure that gets documented in the event it gets worse.

Stephen. I agree, and believe that may be our issue. We drove carefully, but sometimes you cannot avoid bumps or potholes. On backroads I slowed way down, but on highways you cannot safely drive if you are going too slow. I hope they will beef up the axles. I will probably try to stay under 4000 lbs going forward, meaning no water while traveling. I already carry my heavier articles in the back of the pickup. thanks.

StephenH, I don't think the reinforcement we did on our 179s will help on a 196, because that axle isn't cantilevered like ours are The frame rails on the 196 are outboard, right? I suspect it's more likely that the negative camber on the 196 is due to bent spindles/torsion arms. Reinforcing the axle won't help with that. So it's important to find out what's bent before selecting a fix.

Re the cause of the axle bending, yes I agree that it is due to hitting potholes or bumps. Passenger vehicles are designed for much higher g loads, probably 3-5 g's , than the trailers are, which are lucky if they are designed to 2 g's.

But that doesn't make a bent axle the owner's fault. Potholes are a normal condition. FR/Lippert have chosen to design trailers with marginal ability to handle g loading. So if there hasnt been overloading or abuse by the owner he or she is justified in making a warranty claim and there have been several instances where that has been successful reported here.   

I haven't seen one either but I understand the frame rails are more outboard/wheels inboard.

If someone with a 196 wants to get the measurements I'll run the load calc on the axle when I get a chance. Id need the total length of the axle tube and either the distance from the axle to frame attachments to the ends of the tubes or the distance between attachments. Also please confirm the tube dimensions and thickness.