Document what has happened and visit your neighbor. Perhaps he would rather raise his dam and the outlet pipe 5 feet compared with fighting a lawsuit. I do not know what the law says about this, but you have definately sustained property damage due to your neighbor's activities, even if he did not mean to do it. You may also need to sue the pond builder if you are forced to go that way. I have never sued anyone, but I would not sit still for this. First, I would talk with your neighbor. Be nice, and don't make any promises or threats. Simply outline your predicament and the options that you see to recover your property damage. Don't let it get personal. I have only been involved in one lawsuit, where a contractor did not fulfill his duties and then sued me when I did not pay him. I did not have a lawer, but my case was stong and I had documentation. Between the contractor and his lawer, they made monkeys of themselves, and the judge ruled in my favor. Good Luck!