The courts should refuse to hear this crap...toss it right out...
While I agree that many of the crap cases that are filed should be tossed out immediately (and sanctions taken against both the plaintiff and the lawyer, most especially the lawyer), I honestly think that there's enough wiggle room in existing case law to make this a relevant case to go forward. I think it will limit more government power, and for me, that's almost always a good thing.
But if you narrow the scope to just this incident? Just toss it out, and send her the bill.