Call animal control first. Report the dog and the owner. The file a complaint with teh REAL police.
And don;t listen to viper or the other that do not know what they are talking about. YES you can sue for emotional damages.
La Porte v. Associated Independents, Inc. (Florida)
April 3, 1964
Pet owner filed suit for damages resulting from emotional distress for alleged malicious killing of pet dog by garbage collector. The Florida Supreme Court held that element of owner's mental suffering as the result of the malicious destruction of her dog was properly submitted to the jury for their consideration in assessing damages.
http://www.nabr.org/AnimalLaw/EmotionalDistress/LaPorteVAII1964.pdf
Campbell v. Animal Quarantine Station (Hawaii)
Aug. 26, 1981
Action was filed seeking damages for death of family dog due to alleged negligence of defendants. The Hawaii Supreme Court held that: (1) plaintiffs need not witness tortious event in order to recover damages for serious mental distress; (2) medical proof or expert testimony was not required to substantiate plaintiffs' claim of serious mental distress; and (3) damages for injured feelings and mental distress suffered through loss of family dog, which was personal property, were proper items of recovery.
http://www.nabr.org/AnimalLaw/EmotionalDistress/CampbellVAQS1981.pdf
and many more.
But even if you don't sue, PLEASE file a compalint with animal control and the police. Bad pet owners make it harder for good ones to have their pets.