The short answer is yes, the neighbors can sue. Like any personal injury case, the plaintiff must prove that the dog owner 1) had a duty to keep the dog under control, 2) that the owner failed to keep the dog under control, 3) that the dog, and the owner's failure to control the dog, was the cause of the plaintiff's injury, and 4) that the injury resulted in damages (usually in the way of medical expenses, scarring, fear, anxiety, pain and suffering, etc). Also, it appears that the owner knew (as in: had prior notice of) the dog's propensity to attack if it saw an altercation of any kind. This will work against the dog owner. Hopefully, the dog owner has Homeowner's Insurance, or if a renter, the landlord has Insurance. If so, and unless the policy specifically excludes coverage for dog bites, the insurance carrier should provide an attorney to defend the dog owner in the event he/she is sued. Dog bites that produce scars on children generally prove to be valuable cases in terms of settlement agreements. The dog owner should talk to his/her Insurance company and consult the Homeowner's policy.
Answered on Mar 22nd, 2012 at 5:59 AM