This is terrible, I can't believe she was so careless that she cut a piece of his hear off. I would be

. Also, I think it's totally wrong to put dogs in cages together, that's a recipe for disaster. I'm sorry this happened to your baby, hopefully everything will be okay. I wouldn't take her word on the anti-biotic ointment from the vet, this could be more serious than a nick or scratch and who knows if the ointment actually came from a vet. Hope you check with the BBB and other organizations as mentioned in other post, she needs to be closed down.