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What to do if our neighbor claims that our golden retriever killed 2 of her chickens?

Question Details: Our dog went through the woods to their property. The neighbor called animal control, and the next day we were issued a fine for $100. We live in a neighborhood with covenants prohibiting livestock, including chickens and I told her this, after apologizing for the incident. I had told her at the time that we would replace the chicken, but after receiving the fine, I was upset that she handled it this way and told her I would not pay her $100 more for 2 chickens. She is offering us a choice to pay her $100 or take us to small claims court.

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