In my opinion, as a breeder.
1. Emma should be return to the Seller.
2. The Buyer should paid for shipping cost
3. The buyer should not get a refund for vet bills and original shipping. You got that dog, It was your choice to get it ship.You should assumed part of the lost.
4. The Seller should give a refund to the Buyer for the dog.
5. The Seller should get Emma neuter, and start looking for a forever home for her.
I understand both side anger, but you are going to have to come down, forget about yourself for a minute and focus on that poor Emma.
And the sooner the better.