I’m sorry for you’re losses MandaRae.So sorry for your loss. Around here adult chickens can bring $15.00 dollars each. And lumber is no longer cheap. So, if your neighbor is willing to pay, make him pay. Also include the cost of predator proofing your coop-including an electric fence charger and wire. Again, so sorry for your loss.
Imho its fair that the neighbour pays for the chickens and the damage.
But I don’t think its fair to let the neighbour pay for improvements to build an electric wired fort Knox.
The improvements are for all predators, not just for the neighbour dog.