I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.
If she admits in the Complaint that the accident is not your fault, you can file a Motion to Dismiss on that basis. However, even if the facts in the Complaint are wrong, if there's a dispute over what really happened, then you have to go to trail and put forth your version of events in order to prove to the judge that you're not liable. That's going to include testifying yourself, calling any witnesses you have, and producing whatever evidence you have that she knows you didn't cause the accident. It could also help to bring in pictures of the accident scene or the damage, because that's a good way for the judge to determine which car probably caused the accident.
Another option, if you have evidence that she knows you're not responsible, is to tell her that, once the suit is resolved in your favor, you will sue her for malicious prosecution and abuse of process if she does not drive the suit now (and send you proof). It's a crime to file a false police report, and you could press charges if you could prove that knew you didn't flee the scene (fairly simple, if an officer arrived and took a report). It's also illegal to sue someone when you KNOW you have no legal right to recover. Court isn't about who can afford to pay, or who one person THINKS can afford to pay. It's about fault. If you didn't cause the accident, and she knows it, she can be sued for punitive damages for filing a harassing lawsuit. You can ALSO file that suit if you win at trial.
Also, if you have insurance, call the insurance company and provide them with a copy of a Complaint. They should provide a lawyer to help you at no cost, because of this woman wins the case, they have to pay the judgment - and they don't want to pay a frivolous claim any more than you do. This is one of the reasons you pay premiums, so let the insurance company's lawyer draft the documents, prepare you to testify in court, and things like that.
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