Undecided Question

My dog bit someone, lawsuit coming, what do you guys think?

I was walking my dog today. He is a 8 month old bichon frise ( toy breed) and is not large. While I was walking him, he somehow slipped out of his harness and darted off. I ran to chase him, and i knew he would go to this nearby tree to pee, because he has done that before. But i go to see him near the tree, happily jumping and licking this woman walking by. She starts screaming and then I think that aggravated my dog, because it was a loud noise. So he jumps and bites her thigh. A split second after that, i pick him up. Then she starts making a big deal out of it and whines and goes to the security guards.( i live in an apartment in China.) She starts overreacting about things she knows will not happen, but just to stir up things. For example she is like " omg im going to get infected and die because of your stupid dog" and acts like its the end of the world. but in reality, my dogs bite didnt even puncture her pants, let alone her SKIN! Hes tiny, has tiny teeth, all she has is a BRUISE! I get my mom ( i am only 13) and the woman and my mom go to the nearest hospital to see if it is serious, because she is concerned about the severeness. It didnt even puncture, and my dog has gotten his shots! After that, she calls the police station!!! My mom and her go to the police station!!! She files this tiny incident as a case and then guess what, she happens to be a lawyer! Oh great! She is asking for us to pay for her medical bills for … the rest of her life! To me, that is a bit EXTREME! The police are also going to take my dog away tomorrow, and check if he has any diseases. Then they are going to kill him. Just because of a tiny retaliation attack from a tiny dog. If it was a normal person or a guy, they would have just shrugged it off like " haha, " but it just happens to be this stuck up greedy snob who is a lawyer and just wants money money money and doesnt care about what others think. I hate people like this, who know the truth yet fake it. ( for example, basketball players acting like a tiny finger touch is a flagrant foul) ((better yet, soccer players). i am willing to pay like 100$ for the time wasted today, just to be nice. But medical bills for life?!!! What are your opinions about this? Please be honest. Thanks guys.