Not to throw a wrench in this, and I don't want to come off the wrong way here, but why is everyone even considering requesting this be covered under warranty? The folks that serve us in the Cigar community, who are also a part of the community (Mark Neff being one of them, as is the owner of Palio) give us better service than we can expect just about anywhere. I'm sorry if this sounds harsh, but this smacks of trying to take advantage to me. Your dog chewed your Palio. That's not a valid warranty claim for any product I'm aware of.
From Palio's website:
"We at Palio cigar cutter don't take our slogan "A cut above" lightly, we live by it and think our warranty should epitomize it, so it's as simple as it gets! If you feel that the Palio cigar cutter you purchased has lost it's ability to deliver a quality cut, assuming it has only been used for it's intended purpose (cigar preparation), at anytime during it's life of use. Simply return it to ANY Palio cigar cutter vendor for a replacement. No questions asked! "
You are putting a vendor into a crappy position. Either they take a hit they shouldn't or they have to tell you "no, I can't cover this". I'm sorry, but even asking if this was covered was a bad idea IMHO. There is a chance that if you contact Palio directly he will take care of you. But ask yourself: Should he have to? Why should he be the one to spot you the $Xs it will cost him to send you a new unit free of charge?