The good news is that he wasn't more hurt and he will heal. Yes, the driver is responsible for the REPLACEMENT cost of the bike (just get a quote from your LBS), medical expenses, lost wages, and pain and suffering (usually calculated according to a formula based on med exp and lost wages). As others have said, get a good lawyer and don't sign anything without it. You will be suing the drivers insurance cmpany. Was the driver cited and/or does the police report support Jim's claim that the driver made an illegal turn into him? I was hit by a car commuting to work, and in the end I won, but the driver's insurance company dragged it out for a long time. So, be prepared to be patient. For now, worry about hiring a good lawyer, and helping Jim get well!!