Not so much right / wrong as better / worse
Start a new paragraph when someone starts speaking:
One of Saturday’s contestants was Merlyn Hileman, an 11-year-old from Brea who was born with a disorder of the eyes and underwent more than 20 surgeries before going blind at age 2.
“She was a fighter from birth,” said her mother, Melissa. “After she went blind it took her just two weeks to decide, ‘This is the way it’s going to be,’ and she started trailing her hand along the wall and figuring out how to live within her new environment.”
Not like this:
“She was a fighter from birth,” said Melissa, mother of Merlyn Hileman, an 11-year-old from Brea who was born with a disorder of the eyes and underwent more than 20 surgeries before going blind at age 2.