LEGAL ADVISE

In case you don't know it costs $5000 to cover a good lawyers retainer. Judging from your pic there is not $5000 in damages. I think he is blowing smoke and trying to bluff you. If you feel like it, offer him a reduced price to repaint it. It will cost him less than taking it to another shop. BTW look like a quality job on a poor choice of colors. JMO.