Did you keep the dog who failed health tests??? Assuming hip/elbow???? Or was his problem so severe you had to euthanize him??? You are not without a dog/companion at this time, assuming the dogs in your sig line are all alive and with you....
Many contracts only give replacements on severe health problems resulting in the necessity of euthanasia, replacements on lesser problems are offered at half the original purchase price credit....ie, if my pups are $1800 and I made someone a special price of $1200, their "replacement" pup is going to be discounted at half their original cost or $600.....are you paying anything towards the replacement puppy????
Raising pups is very expensive, and the breeder may be trying to cover her expenses, even the expenses on the non litter this fall - she may still have had stud fees and progesterone etc without having a live litter (I have done 4 breedings over the years using frozen semen - never any success - you don't even want to THINK about how expensive that has been! just storing semen for close to 10 years has cost me over $1000 - and I still have semen from 2 males and I just cannot bring myself to trash it....).
Perhaps if you talk to the breeder, she will explain her reasoning - maybe she was afraid that after that litter only having 3 pups, she had better keep one for her future plans just in case there were no more litters from the family....
Csabre Sch1, Hexe Sch2, SG Bengal, Lynx, Komet, Kira HGH & Kougar v Wolfstraum ~ Ziberia IPO1 ~ ATB Basha, Kougar & Kyra, Fenja, Sch3s, Cito, Sch2, Danger RH & Alice Sch1s ~Kelsey