I'm sorry Sarah.....I know this must be heartbreaking for you.
I know it probably doesn't bring you much comfort but I know most breeders wont return your deposit, especially if they specified it was non-refundable. But I agree with Cali, in that, if the pup became ill, while still under their care, they should either make an exception and return your money or at the very least, a substantial amount of it.
The only other thing I can think of, if you otherwise like this breeder, would be to ask if you can then apply your dep. to a future pup...that is if you are still interested in acquiring a dog from them? Or waiting until this little girl is through the 'danger zone' and has a clean bill of health?
I actually preferred to have my pups come from their breeder when they were around 4 to 5 months old. It's just something that worked for me, I know you do not want to wait that long and I'm not sure your breeder would agree to hold the pup that long, even if you did. Some breeders do and some don't.
When I got Quagmire, he was 5.5 months old and he was still very much a puppy but also very trainable and we bonded instantly. I really don't believe I missed out on much, except soggy bums and 2am potty breaks...
I know getting an older puppy isn't for everyone so it's just a thought.
I told her then that I was interest in a red female and asked if she would keep me in mind, although she didn't have them often and when she did - they usually went strickly to a show home but within 7 months she did have a single red female that she was thinking of keeping.....I hounded her from June until October while she was "deciding"...lol and finally convinced her to let me have the little red ball of Naughtiness, now known as Mischief! It was a long wait but I don't regret it and would have waited longer for her because she is just amazing. She finally let me have her when she was 4.5 months old and I just wanted you to know that, anything you think might be lost or missed out on, by getting a pup later, was not an issue, for me anyway.
Not sure I'm explaining myself right...Even at almost 5 months old, she was still able to bond and learn our way of doing things, plus she was a more confident and socialized, happy and healthy pup so we enjoyed her all that much more.
Whatever happens with this breeder or another one in the future, I know you are a great dog owner and I wish you nothing but the best.