Wow. You go, girl! That breaks my heart that people breed such tiny females. Actually makes me sick. Those little bodies are not equipped for that kind of stress.
I hope eveything works out to your and your brother's satisfaction. Sadly, it doesn't sound like it will. Even though the kennel owner was totally wrong in what she did, I hope your brother can still love and cherish this puppy. I'm sure he will. It doesn't take long for them to wrap their paws around your heart strings!