$12K?  The car would be a "total loss" at that price.  No insurance would pay for that and anyone who'd cough that out out of pocket is a complete buffoon.   I used to work for Al & Eds Autosound when I was a teeny bopper.  There is no way $12K worth of damage there.  Even at a dealer $5K would be overcharging.  I can see realistically $1200 in damage,  but not much more.
What that estimate is...is a hit job on Circuit City.  Not that they don't deserve it or anything.  They knew this guy was going to sue the ---steaming pile of meadow muffin--- out of CC and they estimated accordingly.  I went to 3 dealers to get an estimate on a single dent caused by a drunk teenager when I was younger.  I told them all 3 the story.  I got 3 estimates from $2,500 to over $4,000.  I presented them to the guy and said I'd take the least amount.  He coughed up the $2,500...I went down to a body shop and had the dent repaired and painted for $1,100 and pocketed the rest.
Thats $5K of damage at the most and $7K of "screw you CC" counted in.