Well there are problems... many problem. Most of them are not your fault but they are your problems unfortunately.
You are NOT at fault, so most likely this guy is trying to scam you. If he is, it is unlikely he will sue you because he will have to pay the Small Claims Court Fee. Generally people won't take it this far when they themselves don't believe you damaged the computer.
Fixing a cracked case isn't exactly cheap or easy because you would have to resort to going to eBay to get it then find the instructions for that model laptop and spend .75 to 1.5 hours labor to swap all the parts.
Going to court is actually MORE expensive than settling because your time has value AND it harms your reputation even if you prevail. There will ALWAYS be a case logged in public records against you though the disposition may be that you are found not-guilty it still doesn't look good to be sued. Not that anyone is likely to check.
You probably cannot force him into Circuit Court or Superior court for a small-claim. Even if you could, it would require you first hire a lawyer and pay out more than the cost of his $750 laptop. You can generally only get into the higher courts for cases > $3000, $5000, $7000 (whatever it varies in different states).
Remember he does NOT have a right to a jury trial! Only the accused (defendant) has a right to request that. Not saying the court wouldn't grant it if asked only that it is pretty unlikely and if they did he would certainly have to pay the extra court fees.
The Burden of proof is ALWAYS on the Plaintiff! However, the burden is only preponderance of the evidence. In other words he need only convince the judge that more likely than not it is your fault... doesn't really have to prove that burdon beyond a reasonable doubt (it's not a criminal case)
Before you go:
1. Get the depreciated/replacement value of that 2 year old laptop. Price similar, used laptops of the same make/model/vintage and specs. Find the AVERAGE price where an AVERAGE person could actually REASONABLY replace it. (I.e. Just because one person won one on ebay for $40 doesn't mean it is valued at only $40)
Basically, IF the plaintiff wins (unlikely), he still has to prove damages and then add a monetary value to those damages. He isn't going to get $750 on a two-year-old laptop that was $750 in late 2010... Maybe $400 + court costs if he is lucky
I say fight him because you don't' have much to loose in court and you shouldn't give into a scam artist.
More likely than not he will just pick up his laptop and take it somewhere else in town and pull the same stunt until someone else pays. I would send EVERYONE an email about the laptop make/model/serial for them to get it time-stamped. Tell them if he comes in to take the laptop and see if they claim damages (fraud) and to call the police.... Maybe you can catch him trying the same thing with the same laptop for the same damage.
If you settle get it in writing that he agrees to hold you harmless hereinafter, blah blah blah for laptop serial number ******... and that he takes $xxx.xx as full restitution.
