Granted, the cat owner can't have cared that much for their pet if they wouldn't let it live indoors and have a litter box-but the neighbor is obviously trying to perpetrate a frivolous lawsuit. Surely an adult can ignore a kid meowing at them, for heaven's sake.
Any vet will tell you that rubbing a dog's nose in it's feces is NOT the proper way to housebreak them-it is cruel and will not encourage your pet to love you, but only fear you. I never did such a thing to my dog, and she is housebroken perfectly.
I never did that to either of my dogs, either, and my last one I got at seven weeks and by eight and a half weeks he was completely house broken.
Back when I had a dog,1968, that was the method for house breaking a dog, and the only vets around were for livestock.
Now a days, I trying to train my neighbors dogs that roam not to crap in my yard, and my neighbors cats that roam not to hunt for birds at my bird feeders. My neighbors think their pets are wonderful people that wouldn't do such a thing.