[aigel]

Boils down to who (or whose dog) made the hole in the fence. Tough situation, as both parties will claim the other made the hole.

Also, the fence generally is not owned by one party - everywhere I lived it was a common object with shared responsibility for maintenance / upkeep. This may make it hard for you to claim the neighbor should have fixed it.

I think the advice to get a lawyer is good here. This sounds like it may spin out of control quick. I still would look into mediation and to settle it out of court, unless you rent and / or plan on moving soon.

George