Generally, if he is going to sue you then he still needs to present evidence. That requires witness testimony. I am curious to know what you mean by "papertrail." Most papers would be considered hearsay. There are hearsay exceptions but without knowing what kind of paper it is and what it says.
You could sue him if you can prove that he committed the fraud. You would have to prove that a fraud was committed by him, that you have damages, and that he is liable.
If he is going to sue you then you definitely need an attorney, but your insurance company would hire one for you.
A traffic court lawyer should be retained for a couple hundred bucks to help fight ticket.
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The bicycle owner can not successfully sue you, since you have indicated that your insurance company settled the claim with him. Your insurance company would have secured a release of your liability. I suggest you may want to request a copy of the release from your insurance carrier.
I doubt that it would be productive for you to attempt to sue him for fraud. It was your insurance carrier who sustained the loss. The increase in your rates may not have come so much from the bodily injury claim the biker pursued, but rather from the fact that you backed up into his bicycle.
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