I am sad for your dog, but glad he will be okay.
I have to ask - Why you were not in control of your pet? I can understand if he dashed out the door and ran to the cars without warning - that is an unfortunate accident. However - If you simply let him roam free (because there is no leash law), it's hard to have sympathy because it seems like you weren't taking very good care for your dog if you let him run into the path of a car.
In either case though, I don't see any reason for the neighbor to share the medical costs of your dog's surgery. It would be a nice gesture if they did, especially since they are relatives of yours, but I don't think it is something they have to do.
I wouldn't recommend it, but I guess there is always legal action you might be able to take...
I would just be glad that your buddy made it, and take it as either an accident, or a lesson learned.
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