Wow, poor Petey! I'm glad the neighbor did what was right and paid the bill, but I would still be sure and report this to animal control if the vets office didn't, because they need to have it on record if this german shephard ever attacks another dog or person.
Who knows what made this usually friendly dog attack, but I'm glad y'all were right there and able to save Petey from more harm than was done. I would have been hysterical!!!!!
I hope he continues to heal up well, and it sounds like you are doing a great job with the cushings diet.