I don't know what the animal control laws are in your state. However, several years ago in a town next to mine, a dog attacked and injured a woman who was walking down the street. She sued. The only reason I know this story is that I was driving by that house and saw a "For Sale" sign and commented to a friend about it (given that it was an interesting house and property). He told me the story of the dog attack and that the owners lost "everything" in the suit and had to sell their home. Not that you would sue your neighbor, but this is something to be taken very seriously.