The officers then took the father to a nearby police car before accepting they had arrested the wrong person.
Authority chairman Judge Sir David Carruthers said the events of that day were "stressful and humiliating for the man, who was forcefully arrested in response to a criminal act for which he was not responsible".
The Authority concluded the arrest was unlawful, because the sergeant did not have good cause to suspect the father had committed an offence and neglected to take basic steps to identify the person he was arresting.
"As a result of this, both officers used excessive and unlawful force to handcuff the man and remove him from his property."
The Authority also found that the dog handler's conduct during the arrest was inappropriate, and that he should not have placed his dog in a position where it was able to bite the handcuffed man as the two officers were escorting him to the police car.
Police decided not to prosecute the sergeant who carried out the unlawful arrest while the Authority agreed not to prosecute the dog handler because of personal circumstances.