I've been trying to follow this and stay out of the discussion because everyone wants blood from the breeder. I don't blame him/her from not coming on a message board. They do not owe the world an explaination. It would be a battle, with people picking wording apart to make their point, that the breeder would never make right. This is between the breeder and the bird's owner. Calling for ruined reputations based on facts that not everyone knows is harsh and can ruin lives.
I am not new to breeders, and breeder's contracts. All my pets have been purebred and purchased from a breeder. In every contact, the breeder states that you can return the pet after x number of days if there is medical problem, for a full refund, or given a suitable replacement. In every contract it is clearly stated that the breeder is not responsible for vet bills.
I have purchased five pets from breeders, two have had issues, a kitten with giardia and a puppy with a weird growth on her tongue (which turned out to be one of two teratomas). Both times I elected to keep the pet and pay for vet treatment myself.
I don't know all the facts here but I believe the breeder tried to make it right, short of paying vet bills from a vet the owner wanted to take her bird to. If I followed this thread correctly the purchase price was refunded. I'm sure the breeder wishes she/he noticed the injury before the bird was sold so the surgery would have been performed under their care.
Im not sure what I would have done in this case, but I'm thinking I would have returned the bird and let the breeder look after the baby.
Emotions for our beloved pets of choice run strong and everyone's sense of what a breeder should do differ.
I wish this little guy well and good for the owner to somehow cover the vet costs. It's stressful for both.