It should have been the easiest decision in the world for them - a persons' dog is more important than most other humans to most dog owners, yet the law treats dogs as nothing more than property. Pay up and grovel to these people. In-action doesn't make these things go away.
EDIT: just read the non-disclosure section. I understand the impulse to do that, but it's a MUCH better gamble to just kill the story with boundless kindness.