Perhaps this explanation sounds self-serving, but I assure you it is sincere. When clients balk about paying me even if this closing does not occur, I explain to them that I am the only one in the transaction who is not going to be paid only if it closes. The real estate agent does not get paid unless it closes, nor does the loan officer or closing agent. So, as nice and professional as those folks may be, they have a vested interest in making sure the darn thing gets closed no matter what....
Rather than handle this yourself, I would suggest consulting with a personal injury attorney. Asking the wrong question, or saying the wrong thing could compromise your case. The Find a Lawyer tab at the top of the page will let you search by practice area and location.
Sure they can sue you. You should let your insurance company handle this for you--that is one of the reasons you pay them. You were absolutely correct in moving your vehicle out of a dangerous situation and into safer location. It makes no sense to leave your vehicle in a place where it creates a hazard to you or others.
She could have an attorney send a demand letter and/or sue the individual. In addition, she may be able to get some assistance from the Illinois Department on Aging:
She should contact a real estate attorney in her area for assistance. Several things come to mind. First, her attorney should ascertain whether their are mortgages or liens on the property. Perhaps there is more owed than the property is even worth. She may not be required to accept the property. If the taxes are not paid, it likely will be a couple of years before the property is lost (you do not mention if the property is in Illinois or not). When she is ready to sell the property, the taxes...
That would be 720 ILCS 5/14-1, which requires all paties to the conversation to consent.
The tricky bit with these types of claims is that the buyer would need to prove the seller was aware of the defect. Not always easy, but sometimes possible. I have seen a few situations where the seller actually talked to the neighbors about the problem, and the neighbors would testify against the seller. Also, once in a while the seller will have had a contractor look at the problem, and then by dumb luck, the buyer contacts the same contractor. If you are the seller, I would suggest you talk...
Whether he is right, wrong, or a little of both, the fact is you have been sued. If you ignore it, he will win by default. If you try to take this on yourself and the plaintiff has an attorney, you are going to have a heck of a tough time winning. You would be wise to hire an attorney to represent you.