removal of car

Other

We own a small development of falts which has a small car park.
There had been a car left on the car park in some state of disarray. It was first noticed in Oct 08 when it had 1 flat tyre and no tax. Some time in the New Year its position moved in the car park where is was left backed into some bushes and close to our garages. Now it had 2 flat tyres and the tax was now 6 months out of date. The car remined there , un moved and continued to deteriorate in condition with broken wing mirrors etc. Finally in July 09 we asked our lettings agent to find the owner , maybe by contacting DVLA or police.
A few weeks later we were informed by the agent that DVLA or police could not help, that they had placed a note on the car asking for the owner to contact their offices ASAP as it would be removed in 7 days. They had no response and the car was towed away by a scrap merchant who crushed it.
One tenant of the flats then contacted to say that it was her car and that she had been on holiday so not seen the note.
We have now received a solicitors letter demanding compensation for the car and its contents for £2,500 or we will be taken to court.
The lettings agent want to contest this as they feel they follwed a rhobust course of action on our behalf. We don't want to go to court (but don't feel we should have to pay out for our agents actions) and don't want to loose a long standing tenant.
We feel that the claim is vastly inflated as the car was a wreck and certainly not worth the £1300 claimed for it. As for the contents worth £1200, again this is highly dubious as doors were literally falling off it.
Would you negotiate the fee and settle or would you go to court?