It sounds like your grandfather has serious injuries, and it seems like it is the local woman's fault. As such, yes - it appears that your grandparents have a legitimate lawsuit. Your grandfather should be compensated for his pain and suffering, as well as have his medical bill paid. Do not delay. Do not speak with anyone. Seek counsel ASAP. Good luck.
If you do not have confidence in your attorney, seek a new attorney ASAP before its too late. Do not settle and be unhappy. Find an attorney who you are comfortable with and change lawyers now. Many personal injury attorneys, such as myself, offer free consultations in NYC. Good luck.