You should let your insurance company handle it. The other party has a legal duty to support his damages, therefore he has to supply photos, an estimate and a receipt that he repaired the vehicles. Most likely your insurance company has advised him of this, but he is disregarding it because he probably either a. didn't do the repairs or b. had no damage and just wants $1700. Even IF he does pursue you in small claims court, your insurance company will provide you with all the support you need to back up your case. DO NOT GET WORRIED. And do not give in to the taxi-cab driver, if he calls you and you answer, refer him to your insurance company. If this does go in front of a small claims court judge, and the taxi-cab driver cannot provide any documentation to support his damages and the repairs that were done - he won't get a penny. This is why you have insurance - you want them to pay what is fair. If they paid every claim that was fraudulent - insurance premiums would skyrocket. Does that make sense? good luck.