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I'll join the chorus of people agreeing that the OP is in the right, and Ty is in the wrong. No one thinks that Ty set out to make the raffle go in a different direction than planned, but since it did, Ty, you are the one responsible. As Tom said, you are responsible because of your GOOD luck in producing more expensive animals! But, still, the change in circumstances was on your end, not the OPs. You owe her a tegu or $3000.
And, as Lucille mentioned, that statement about not telling her what you were "planning" to do with sending the more expensive tegu "to see what kind of person she was", sounds fishy. But, if true, it shows a lot more of what kind of person you are than what kind of person Michelle is. I see absolutely no greediness in any of Michelle's statements - only a desire to get what she rightfully is due by winning the raffle. Wanting what is yours is not "greedy".
Apologize to Michelle, and send her a tegu or $3000, and people are likely to accept that this incident was a one time case where things went a bit sideways in an otherwise pretty great reputation, but in the end you accept responsibility that falls squarely on you.
Returning her $400, while it may turn out to be all that is required by law, is not "solving" things. It is weaseling out of a deal you made, on a technicality. You will not appear to have done the right thing in resolving this for only returning her $400.
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