What can I do if a kid came in my yard taunting my dog my dog broke his chain and bit him?

And a neighbor was outside and said the kid was taunting my dog and then my dog broke his chain and bit him what can I do because its been 6 months or 5 months and now she wants to sue me and I gave her always after that so there would not be any problems and she said don't worry about it and now she want to sue me what can I do if her kid was in my yard and mess with him and he broke his chain and bit him.