My fiance backed out of a legal parking spot at work yesterday, in New Haven, and hit a 350Z that was illegally parked along the curb of the drivway of her work place. The police were not called because my fiance and the 350Z owner work together and, originally, it was thought that my fiance would not be going through insurance. I need help finding out . . .

1.) Should she be held responsible for it since the car was parked illegally?
2.) There is a minor scuff and small paint chip on the bumper and the kid who owns the car claims he had his friend at a "reputable autobody" look at it and the cost to repair came to just under $1100 (I would assume this is to remove, resurface and paint?). Does this sound right?

Any thoughts would be greatly appreciated.