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I haven't read the whole thread, but I would do whatever it took to make her happy. You've already admitted it was a colossal **** up. Previous customer or not, a great opportunity got squandered because of an employee's mistake. I would explain the whole situation to her, and your cost just so she knows how hard you tried to make it right. I would also fire the employee over it. It may have been one mistake, but it was one that is costing you a lot of money. In bad pub as well as out of pocket expense to make that customer happy. You can't afford having those kind of liabilities around. Just my .02.
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