I'm sorry for your loss of little Macie

Poor baby
I'd be SUPER DUPER hesitant to even get another pup from this breeder, whether it was from the same parents or not. Why is she even breeding those same dogs again? Sounds like she breeds tinies and that is a big NO NO!
I'd get a refund, if it was me. If I had to take her to court, then so be it. Just how I feel about it. Good luck whatever you decide to do