Quote Quoting itsafilly
I feel like this lady is trying to pull a fast one, and just wants the pony and the money.
That may well be the case. If the only actual witness to the events was the six-year-old daughter, her testimony is probably not very strong, particularly in relation to any allegation that the pony you sold "started it" (so to speak).
Quote Quoting itsafilly
also she bought the animal in Indiana, why do I have to go to Michigan to court.
Probably because she lives in Michigan, and it was convenient for her to sue in Michigan. You may well have valid objections to Michigan's taking jurisdiction over the case; that's something, though, that you should discuss with a defense lawyer.