I, too, wonder about the dog's history. Usually, even if a dog "corrects" someone, it isn't with a puncturing bite, it's with an air snap or a more inhibited bite. This could also be a "guarder" - some dogs guard people, space, resting spots, food...the list can include such innocuous things as pieces of tissue paper. In any case, it's hard to think about such a severe bite coming out of nowhere - I would tend to think that with questioning, you might find a series of red flags, even if they weren't apparent to the owners.
Is there a possibility that the dog had been corrected in the past for growling at people on the couch????
I can't help but think of Sue Sternberg's video of the interviewer who is bitten by a police K-9 while chatting with the handler. The guy was at eye level with the dog, and just a momentary glance set the dog off with a stunningly fast face bite. So, movement (when you speak, your mouth moves) & eye contact are probably the reason for the bite to your niece, too. This is NOT an *unprovoked* bite, it's an *INAPPROPRIATE RESPONSE* to those stimuli. There's always a reason for a bite - it's just that it's the dog's reason. Which, of course, doesn't lessen it being inappropriate. But, if you can't explain it rationally, you can't address the dog's situation either. I would never have this dog on a piece of furniture again at level with a human face, and I would restrict his access to guests, whether they be adults or children. Any bite that leaves 12 stitches in a young girl's face is not accidental, and if they want to keep their dog, and not euthanize him, there is absolutely no room for a "next time".
I, too, hope that your niece recovers without scars, physical or emotional. And, that she continues to enjoy the company of the mostly good dogs in the world.
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"If you talk to the animals they will talk with you and you will know each other. If you do not talk to them you will not know them and what you do not know, you will fear. What one fears, one destroys." - Chief Dan George
"The fidelity of a dog is a precious gift demanding no less binding moral responsibilities than the friendship of a human being. The bond with a true dog is as lasting as the ties of this earth can ever be." ~ Konrad Lorenz