My tought is, that regardless of the condition of the fence, your parents are responsible for their own dog. The hole wasn't immediate, it was a known danger.
Keep the dog away from the fence, until the owners are forced to repair it.
That was the thing it was not a known danger and hole just happened that day at some point of 8:00am and 8:20am. Appreciate all the responses. The people claim they are going to fix the fence so we will see if it happens.
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