I dont believe they have a good case here. Soundness in a broodmare is kind of a nebulous area as they aren't racing and many/most older ones aren't what we would consider to be sound. Obvious the laminitis is a concern but again the mare was unraced for a reason so again what exactly constitutes sound? Everyone has the opportunity to have a private vet examine a horse prior to purchase and they did not do that which will ultimately probably be used against them in court.
They would continue to keep breeding her simply because they are likely to lose this case. The laminitis may cause her to have a shorter shelf life but shouldnt be too big of a deal now especially if there are noted foot specialists like Redden claiming that she is sound. As for your other questions it is certainly feasible that they are looking for a discount, her foals have been less than great, etc.
In the end it is hard to believe with a clean report from a noted vet clinic pre-sale, testimony disagreeing that she was unsound and using bute and supposed faulty information from a handler and the lack of their own presale vet evaluation that they will get the sale overturned. That doesn't mean they aren't right about their assessment. The sales are treacherous places where far too many people allow themselves to get ripped off because they don't have proper representation or are just naive enough to believe the nonsense that they are being fed.
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