Please note that CarInsurance.com can not offer legal advice. I suggest your friend contacts a lawyer to determine his rights and what he may or may not be responsible for.

None of what you state seems normal or typical. If it is the other parties fault, then your co-work is not responsible for the other vehicle's damages or claim. If the other person is found to be at fault, then the other parties insurance company IS responsible to pay for your co-workers damages. Ask the claims adjustor:

1. If I am not at fault, why I am responsible to pay anything?
2. To whom do you expect me to pay the $3000 and if I don't which entity will put me in jail? What would I be charged with when going to jail?

Hope this helps.