If I already went to mediation do i need to file a response to the claim before I have my hearing in front of the judge?

This is a small claims case, I'm the defendant representing myself. I'm being sued by a dog breeder (I'm not even sure if she's even licensed to breed..) over a dog that was given to me from a friend. this friend, after a couple of weeks decided the dog was too much to handle and couldn't give the attention the dog needed, so she called the breeder back to have her take her back. the breeder repeatedly ignored or procrastinated about getting the dog back. So my friend was left to make a decision, I was able and willing to give the dog a good home so she gave her to me. Now the breeder is suing me, that I agreed to the same guidelines that she had with my friend, that was to take care of a litter of puppies for payment of the dog. So the dog was never pregnant and so the breeder wants 2500$ for the possible litter she "could have had" if she had the dog back. But in my eyes the breeder abandon the dog.