Nobody is wrong

The scenario you said is under USUAL situation where the wrongful party didn't receive a citation. You can be at fault of an accident and NOT be charged of anything if you do everything properly, meaning you had your proof of insurance, registration, following traffic rules, etc. However, in this case, the wrongful party received 2 citations--driving without a license and failed to yield. She was found not responsible for the ACCIDENT by her insurance company and the arbitration process. However, the court is going after her for her DRIVING WITHOUT A LICENSE, a serious traffic violation, and the related consequences, which would be causing me to spend $500, instead of the ACCIDENT. The insurance companies decide if you are at fault or not for the ACCIDENT. But the prosecutors of the government will go after her for the Citation. They are totally different matters.