Do we owe our neighbor anything?

My neighbor's cat has turned up dead in our yard and she said she is going to sue us because of it. I have a Pit, 2 Belgian Malinois, and 2 Siberian Huskies so I wouldn't put it past them. Our neighbor is an older woman, widowed, so I assume the cat was all she had for company. I am sorry about the incident but just because it was cat doesn't mean it had the right to strut about in other people's yard.