I am sorry for the loss of your pet. The kennel has made you a more-than-fair offer in my opinion. A release is standard procedure in order to finalize any issues of liability. As for the other dog, you can ask, but they have no duty to keep you informed. You could report the attack to animal control, and they will investigate -- they may declare the dog to be viscious. Again, my condolences on this tragedy.
I am an Attorney-at-Law, licensed to practice law only in the state of California. Unless we have both signed a formal retainer agreement, you are not my client, and my discussion of issues does not constitute legal advice. Opinions expressed herein are those of the author, and do not necessarily represent the opinions of those who hold other opinions.
You can ask and make that part of the settlement. I am guessing that the release will be to protect them from any further liability. If you are concerned perhaps you should have an attorney review that document for you.
If you make your request part of the release language and both parties sign the release it will be part of the settlement. Please note that you may be releasing more legal rights than you realize if you sign this release. The fact scenario you provided indicates other laws and legal theories might be extinguished by signing the release.
Sign up to receive a 3-part series of useful information and advice about personal injury law.