which state? did ur fren got ticket for not having insurance and accident ( 2 felony). Did judge ordered ur fren to fix the other driver vehicle?. from what you have written; it seems that the driver is in need of money and he/she is trying to blackmail ur fren. Even if ur fren pays the other driver  money, make sure he dont pay the other driver  by cash, cuz there would be no proof that ur fren actually pay him off. Rather have ur fren pay by either check or money order that way ur fren would be in a safe bait.