Oh, I am just SO sorry that this happened to you and your poor Ellie - it takes every ounce of self control I posses to write this with a cool head, because it is truly outrageous, and needlessly tragic.... but you know that, and my repeating it won't help you... so here's some power of information that may fortify your reaction to this tragedy.
I just looked up the NJ Statutes about dogs and livestock, and while they are not worded as strongly as in Kentucky, where BYCer "Lickskillet" is enduring the aftermath of a dog attack that decimated her flock and endangered her daughter... nor worded as strongly as in Wyoming, where I live... (oo but I did just read a statute that your Municipality is also liable for this - would be good to pursue this too so the animal control officer is held accountable for not doing his job... although going after the municipality may make it so that no damages may be filed against the owner... a person whom it sounds as though needs a bit of checkbook therapy)
It doesn't seem that you will get much help from the dinglefritz animal control officer, so I would run, not walk, to a good attorney... (I have almost NEVER given this advice, because it should be used for extreme cases of harmful negligence) It is NOT NOT NOT in any manner of imagination YOUR FAULT that this dog bit you or damaged your hen... (and for this argument, it's stronger under the law if you call her 'livestock' even though we all know they are more than that) There is ZERO GRAY AREA here. So, filing a lawsuit may be the appropriate way to a.) have a return on every penny of your medical bills, and veterinary bills... b.) create an additional cost loss for the negligent dog owner substantial enough to snap them out of the stupidity of thinking they are above the law because their dog is, to them, beloved and therefore above reproach. c.) Protect yourself and your community (including children whom this dog could bite - nevermind that they say the dog did this in a predatory frenzy... all that proves is that the dog is incapable of making a distinction, and therefore as a domesticate should be tagged as violent and dangerous and a severe liability) from an additional attack.
Next, ABSOLUTELY DEMAND all vaccination records from this dog owner... you have been exposed to anything this dog may carry. If the dog isn't current on all vaccinations, you have the right to have the dog destroyed, or at LEAST pile that on to the damages in your claim.
Here are the NJ statutes that I found with a super fast perusal this morning... and they do NOT include those statutes regarding dogs attacking people, which is your strongest argument.
I know all of this won't reverse time, or change things for your dear Ellie, or for your injury, but I do I hope they help in fortifying your understanding about your rights, and the strength of the laws behind you.
New Jersey
Title 4. Agriculture and Domestic Animals. Chapter 19. Dogs, Taxation and Liability for Injuries Caused by. Article 1. Taxes and Use Thereof; Injuries to Animals and Poultry.
4:19-9. Right to destroy offending dogs
A person may humanely destroy a dog in self defense, or which is found chasing, worrying, wounding or destroying any sheep, lamb, poultry or domestic animal.
4:19-7. Effect of article on owner's liability
This article shall not exempt the owner, possessor or harborer of a dog from liability for damage done by it but he is hereby declared to be responsible for such injury. A civil action may be brought by a person for the full amount of the damages sustained by him and in such action it shall not be necessary to prove that the dog was accustomed to commit the injury complained of or a similar injury.
The presentation of a claim for damages to the governing body of a municipality shall constitute a waiver of all claims against the owner.
4:19-8. Failure to kill dog found worrying animals or poultry; penalty; triple damages
An owner or person harboring a dog which is found killing, worrying or wounding any sheep, lamb, domestic animal or poultry, who shall, after being informed thereof, fail to kill the dog within twenty-four hours after receiving such information, shall be liable, to any person who shall sue for the same, to a penalty of ten dollars ($10.00), to be recovered with costs by a civil action before the Superior Court and shall also pay triple damages for any injury done.
4:19-17. Legislative findings and declarations
The Legislature finds and declares that certain dogs are an increasingly serious and widespread threat to the safety and welfare of citizens of this State by virtue of their unprovoked attacks on, and associated injury to, individuals and other animals; that these attacks are in part attributable to the failure of owners to confine and properly train and control these dogs; that existing laws at the local level inadequately address this problem; and that it is therefore appropriate and necessary to impose a uniform set of State requirements on the owners of vicious or potentially dangerous dogs.
Here is a link to some of this...
http://www.animallaw.info/statutes/stusnjst4_19_1_4_19A_17.htm#vicious