We went to a neighborhood picnic. My son was playing on the other team (Kyle age 22).
The ball gets hit out of bounds on his side so he runs and gets the ball. He turns and throws the ball underhand to a player on the opposing team who's turn it was to serve (about 10 feet away). The person he threw it to who was also closest to him was Gary (age 50). Gary had ran to the sideline to take a drink from his beer and when the ball got to Gary it hit his hand holding the beer which broke his tooth. Gary was at the party still drinking to about 1am in the morning. A few days later we got a certified letter from Gary's lawyer saying that he was suing Kyle, Me and my wife because of Kyle's negligence. I disagree that my sons actions were negligent (performing a natural act in a game of volleyball (throwing it to an opposing teams member who's turn it was to serve). I believe the negligence was on Gary (drinking a beer during a sport). The letter from the lawyer states that we must tell our homeowners insurance and if they deny the claim that Gary will sue us personally. I do not want to see Gary get a dime. I would rather he take us to Small Claims court than be given money from our insurance. My insurance company says that we should start a claim and they will investigate but I feel like that could effect my insurance either way. Gary does not want to sue the neighbor who had the picnic because he's friends with them. Everyone that we spoke to from the picnic (included the owners of the home who had the picnic) says that Gary is wrong in their eyes.

Optional Information:
Country relating to Question: United States
State (if USA): Connecticut

Already Tried:
Nothingbut talk to the my insurance company