You had the right of way going straight forward in the public street. The vehicle operator entering the street had the higher duty of care. Unless I am missing something, which I can't see, the person who came out into the street is 100% at fault. That the driver coming out of the driveway claims he may not have been able to see due to the parked cars is an excuse but not a defense.
As for the property damage claim to the vehicle that you were driving, with the owner in the passenger seat, go against the other car. It's operator was at fault.
This answer is provided for informational purposes only. Actual legal advice can only be provided in an office consultation by an attorney licensed in your jurisdiction, with experience in the area of law in which your concern lies.