@Larka:
The problem is that I live in a trailer park- I own my trailer, but I don't own the land it sits on. So technically it wasn't "my" yard since I don't own it. The cop said that even if the kid was in my house, unless the dog is on a 6ft or smaller leash, I am at fault. I think it's crap, and I'm looking up all the laws to see if I can figure something out.
I'm thinking that if they do decide to sue, that I can come back with something about child endangerment or something. The kid that was bit is no older than 5, and is always running around on his own. Before he came in my yard, he was jumping up and down in a tree, breaking branches off.
Normally if your dog is leashed no matter what the length you have done the right thing. As others have said check the animal control laws in your area and find out where you stand.
What you might be able to do is claim this child was provoking your pet, and that this was not the first time. Clearly if the hair stood up on the back of your animal he was in fear and reacted normally.
If a 5 years old is running around constantly unsupervised I would think that is a matter for Child services and you might want to alert them. I certainly would not let any police officer play lawyer and quote me the law. There is a reason they are cops and not attorneys.
I wish I had paid closer attention to the date at the beginning of this post. I know feel somewhat silly for posting in regard to it.
Jason