If it was in a residential area, the other party is at fault. Whether she used her blinker or not is irrelevant. There is NO PASSING in a residential area of another moving car. Hell, and some of you may not know this, it's even illegal to pass someone on the right even if they have their left blinker on to turn in an intersection with no dedicated left hand turn lane.
If she's "at fault", does she have a court appearance to make? It sucks, but a lawyer would eat this shit up. However, if money's a problem, plenty of pics and witnesses showing up may be enough to scare them out of this. Once you win the case, you can file a civil suit or some shit against that guy for damages and court costs or something.
---- Sidestory ----
Watched a security officer speeding in a truck, strike and kill a guy in his early 20's riding a bike. After everyone was there, I remember talking to the parents (who lived nearby) and turning to see and hear the fuck laughing with a couple of the cops. What about? Dunno. Standing there with the parents... I don't give a fuck if you just heard the funniest joke ever. This is not the fucking time after an accident. It is inappropriate and unprofessional.
Anyway, don't let them get away with this BS.