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I'm not a lawyer -- and I'd love to hear from one -- but I do think she has grounds for a civil case. Not "open and shut," but (possibly) worth pursuing.
With regard to the editorial changes to her plot, characters, etc., she is probably out of luck.
On the other hand, in any profession that I've personally encountered, if a person represents themselves as "professional" and turns in sub-standard work, they can be sued. She would probably need to show damages. Since she didn't pay anything, the obvious "damage" isn't there. But if she can convince a court that the miserable spelling and grammar reflects on her and has damaged her chances of making subsequent sales, she might succeed.
If it were me I'd at least look into it.
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