Did the neighbors offer any restitution for the damage caused by their dog? I would think at the least they would replace your property and then try to make up for the emotional loss in some way. If you have nasty neighbors then there is not much you can do to get them to accept responsibility for the actions of their dog unless you have proof that it was their dog. Our neighbor let his dog wander in our front yard all the time, peeing on our bushes and leaving piles but we put up with it for years before contacting animal control. Once they were given a warning they were more careful and now the dog has died so we don't have a problem with the dog anymore but the neighbors are still nasty. It is the hardest part about sharing a property line, you have no control over who lives next door and what stress they might add to your life.
