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You would have to pay TD if TD have to pay her. In other words you are reimbursing TD.
So if they already paid her something and don't think they can get it back or they feel that she's entitled to something then they may say that this amount is needed to reimburse them.
But frankly, it really is hard for me to answer without knowing the facts and this is something your lawyer should be telling you so go ahead and ask your own lawyer as well.
Does that help?