Your question is very hard to follow. Are you saying the case is close to trial now and is a better case since an important witness that could not be found is now available to testify and is helpful to your friend's case? Many cases settle on the courthouse steps regardless of whether a witness is located. Certainly the availability of a witness should make settlement even more likely.
If you feel this is the "best" answer or is "helpful," please indicate. Since I am limited to the information you provide, I cannot guarantee the accuracy of the answer. You should seek the advise of an attorney who can explore all aspects of your question. This communication does not form an attorney client relationship.
Cases often settle right before trial even if previous settlement attempts have failed. Good witness testimony is important for any case. The police report probably will not come into evidence (it's hearsay). I would recommend that your buddy discuss this matter with his attorney because his attorney will have a better sense if the case will settle.
This is really not an appropriate question simply because we would need to know a great deal more about the case. This question can only be answered by the lawyer. Lawyer's go thru a process called discovery. Here the case has gone to facilitation. That is beyond discovery. Please talk to the lawyer.
Sign up to receive a 3-part series of useful information and advice about personal injury law.