John ran from a dog [ he knew was rabid [ trying to bite him ]] It's a special form of 'stacking', which occurs where a defining (restrictive) relative clause combines with its antecedent to form a larger unit which is modified by a non-finite clause that is sometimes called a reduced relative clause. In your example, he knew was rabid combines with its antecedent dog to give the noun phrase dog he knew was rabid and this is then modified by the clause trying to bite him .
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John ran from a dog [he knew was rabid [trying to bite him]]
It's a special form of 'stacking', which occurs where a defining (restrictive) relative clause combines with its antecedent to form a larger unit which is modified by a non-finite clause that is sometimes called a reduced relative clause.
In your example, he knew was rabid combine