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It is impossible to put a value on the loss of a beloved pet, whether or not it was as a result of an error, but I think it would be fair to ask for compensation, in the same way that some people seek monetary recompense when a family member dies due to malpractice or failure to provide proper care.
If it had been necessary to destroy the dog, because it was incurable and suffering or in pain, that could be accepted by the owners as a compassionate act, but to be told that their pet was "accidentally killed" would certainly have caused much unnecessary distress.
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