Legal Question in Civil Litigation in California

So one dog was killed in your yard and the pit bull then went into her yard and killed the other dog? And you are going to allow them to keep the pit bulls? And you probably did not tell your insurance company about the dogs so they will deny coverage. Has Animal Control been called?

If you knew the pit bull was dangerous then you might very well be negligent, especially as to the second dog. That the dog could knock over the board also suggests it was not properly maintained. Try to get the tenants to pay, but if they will not and the neighbor seems likely to sue, try to settle with her.

Mr. Shers raises good points, albeit a bit harshly. I agree that you have potential liability, and that you need to reconsider the allowance of the dogs and the condition of the property.

As to the claim against you, I would take the following steps:

First, your tenants should pay or indemnify you for your payment. If they refusal, that is likely grounds for eviction.

Next, if your tenants will not pay, you should consider tendering the claim to your insurance carrier. If your tenants carry renters insurance, you should require them to tender the claim as well.

Finally, you should definitely talk to the neighbors and reach a settlement; if you tender the claim to an insurer, the carrier might initiate settlement discussions for you. But the neighbors did nothing wrong and as a matter of ethics and compassion, you should discuss the situation with them and try to reach an accord.

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