That is really so sad, poor dog! I love dogs and hate hearing stories like that, but it was just a horrible accident. ANd frankly, the owners of that dog are to blame, not you. That's what can happen when you let your dog run around without a leash. That must be terrible to have to deal with but it really wasn't your fault, it was simply an accident and these things happen.
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You can catch more flies with honey than with vinegar. That's great...if you want to attract vermin.