Your neighbor's English barker, Cedric, is very friendly, but you can't tell from the outside. Last Sunday a series of very strange events happened at your neighbor's house. When the mailman walked into his neighbor's mailbox, he saw Cedric, and since the mailman was very afraid of dogs, even though Cedric was a small dog, he was scared. As soon as he saw Cedric coming toward him, he was so scared that he fell to the ground and immediately broke his left arm. A driver just happened to be driving by, just watching, and at once hit one of your neighbor's parked cars. The hit car slides down the road, through two fences, and finally comes to rest in the living room of Ms. Smith's house.

Question:
Will your neighbor be implicated in the lawsuit?
What is the driver's liability in this scenario?

Insurance knowledges inquired