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Backyard Sewage Backup

Thanks in advance!  A tenant moved in and two weeks later there was sewage that backed up into the backyard.  I don't know how much because it was raining very hard at the time and several days after.   It wasn't possible to tell poop vs. mud.   The back up was snaked for a quick fix and was determined that it was the city's "fault".  The city fixed the problem shortly there after.    Now the tenant is claiming that her dog has a parasite caused by the sewage back-up into the back yard.  Do they have a claim to any vet bills?  Yes, she knew there was sewage in the area and let her dog run out into it.  Her dog also poops in this area of the back yard.    Was I responsible for cleaning up the backyard area after the sewage overflow?  Is there any legal claim against me?    Again, any help is appreciated.    
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Thank you.  That is what I told my wife we should do, but she's very reluctant for some reason.    What's interesting is that when she sent me her vet bill, despite being sick "throwing up and having severe diarrhea" for 2 months, the dog is 25 lbs over what the lease states is allowable.  The lease that was signed just 2 months ago.    Thanks Gregory
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