Glad to hear your dog is ok but be wary about off lead walking, technically in this situation their dog was under control of its lead and yours wasn't and walked into trouble. For sure though their dog should not be allowed to react as it did but they could argue all sorts that it felt threatened etc.
I always walk on a lead especially as the Dangerous Dogs act has been amended to say that anyone feeling threatened by a dog can make a complaint thus an incident does not even have to have happened and if your dog is off lead it would severly weaken any defence you tried to make.
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