I think I would negotiate as well,.. although at some point it might come down to drawing a line in the sand. If it comes to continuing problems, at what point will you draw the line Rainplace?
We love all our neighbors except for one down the street. Her husband is wonderful, but she stays at home and seemingly has nothing better to do than to get into everybody elses personal business. Not just on-the-surface personal but digging about (ahem, even in the TRASH) and then, even though you know she's aware, she prances about makes leading comments like nobody else knows what she's on about. Blah.
Her friend's dog is the one that broke the door off of my coop (yes, broke the door of off an arrow metal shed) and killed all wyandottes but one, which of course is a roo. She doesn't know that I am aware she knows the dog's owner well, and she starts asking me leading questions about my fencing, asking if it could have been another dog (I saw the dog with a chicken in mouth 2x), and basically telling me my chickens might have been over my property lines even though I had reiterated several times earlier in the conversation that they were COOPED. Meanwhile she talks about about the "supposed" dog and the "supposed" owners thinking I don't know her kid is in the same troop as their kids.
I consider my compromise not smacking her in the face each time I have to talk to her, she irks me so badly.
The funny thing is, the situation had been solved amicably prior to her sticking her nose in it. I put up over $500 of electric fence after the second attack on the border and they are trying to keep a better eye on her. They don't want to spend money on fencing, but seeing as I keep poultry and I don't want to deal with problems with neighbors, I made the investment in fencing. Voila! Problem (hopefully) solved!
SO, in that way I compromised with them.
Our coops are in our shop and right next to the house, and I love hearing the rooster crowing in the morning. My white wyandotte makes sure we know when the crack of dawn is, and I love waking up later to hear him out in the coop.