[lil fu fu girl]

Your poor little baby. I will never understand people.
How can this happen all the time to her other small dog?
I am sure she just said that out of fear. I mean if this happens to her little dog all the time, the dog is probably dead, or close to it!
I would simply explain to her that what happened is unacceptable, period. Whether she paid for the vet bill or not.
Also you do not want that shephard freely moving in and out of the fence.