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She's dumb like a fox if she actually told you she used one shipment (Stud fee) on four mares. That is a definate no no.
FHANA is not going to like that. I would be curious to hear what they have to say about that.
I suspect she is short on money.
I've heard breeders rave about the quality of their foals and they know full well when they are full grown they are not to breed standards. I wouldn't listen to much too her, she is already dishonest, so her word is worth nothing.
But if she did, (for absolute sure), breed those two then the chances are the foal is of good quality.
All correspondence with her should be in email or registered letters, you need a paper trail.
As for small claims court. I am not sure if the foal's breeder is in the same State as you but doesn't different States have different limits on what you can file for in small claims? If so I go with the higher amount.
I wonder who has bought the other foals? and what problems they are going through?
I am in contact with the only other buyer out of this years foals, and she had the same issues I did. Really hard to contact her, cant get full answers to questions. No pictures, no updates... the only call she finally got with any real update was one at work from the breeder letting her know that her foal dropped dead. Come to find out that mare had a foal the year previous with the heart issue, and this other buyers foal had a broken neck- but also a tear in the heart that might have caused it to fall during cardiac arrest and break its neck. Or the tear might have just been there and it fell on accident. But the breeder mentioned the other foal casually and said "well, i'll breed that mare one more time I guess and see how that one goes". It is just hear-say through another person, but I was really shocked to hear that.
I know the breeding definitely took place to Anne 340 for the mare who's foal I bought, that is the only record Fhana has, but it at least tells me that much. Well, they also have the certification that she made STER last fall as I was assuerd by the breeder- however she wont allow me to have a copy of it because I suggested her business skills were lacking due to no communication and no updates.