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.
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