Back to Square One on Bonfire Night

Last night was the eve of bonfire night of La Noche de San Juan, our neighbour decided to burn his stack of wine cartons that he piles up on the terraced land just in front of our house. We hung out with him for a while just to make sure that a) the fire wouldn't spread b)he wouldn't fall into the fire (he has a drink problem and is usually tipsy ++) and c) it has become a sort of annual ritual that we hang out with him for an hour or so that night. I feel quite sorry for him as he has a big drink problem, he doesn't work and he lives in a cave-house that is still in its animal-outhouse form with no facilities etc I took some photos of the fire and then was totally taken aback when he said that the neighbour across the way who I had bought/rescued Dick the Jack Russell from, had chained another dog in Dick's spot that day. I nearly choked on the wine I was drinking and just made a hasty entrance indoors. It is now 10 am and I've been indoors since. I am really upset by this and don't quite know how to deal with it. Vladi says that he thinks our neighbour may be lying to get a reaction from me. I could go out and check but really can't look that way for fear that the whole dog-chained-nextdoor nightmare is starting again. Gawd!

P.S. It is 19.30 and I still don't know...am resorting to 'blind-eye' reaction at the moment until I figure out the next step!