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Can someone sue if they accused a toddler of causing damage to their car?

Question Details: My toddler leaned on a car hood at a ball field. I saw him and had him immediately stand up. He literally leaned his head on his arms because he was tired. The owner has accused him of putting large scratches that removed paint high on the hood close to the windshield where he cannot even reach. He is demanding that we pay for this damage our son did not and could not have done. He is now asking people we know for our personal information, stating he wants us to pay or will sue us. At the time of the incident no police were called, he just pointed out the "damage" and accused our 3yo demanding we give him our information to fix it. The "damage" is consistent with that from road debris. Do we give him out info to speak with him again? Do we get a lawyer? Do we file a harassment charge with our local town police. We live in a small town and can't believe this ridiculous accusation and continuation thereof. I do not want to make things worse but I refuse to let this individual make such a false accusation and continue to speak ill to others about my family.

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