Talk to the owners - if they apologise profusely and bend over backwards to make everything right, including covering costs and making their yard more secure, maybe give them a second chance. If not I imagine you should legally be able to get the dogs put down.
We let some neighbors off the hook after their blue heeler bit my wife on the footpath 12 days after a spinal fusion - they apologised, brought flowers to the house and their dog never got out of the yard again. I think it was worth giving them a second chance because of their responsible attitude.
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