No it doesn't matter what he spends the money on. A few months ago some girl backed into our Blazer. Just a dent above the rear wheel and some scratches. I was estimated at $1,154 to repair. Her insurance company asked who I will have fix it and I said I will not be repairing it and to just cut me a check, I have other things I could use the money for. So they did just as I asked, handed me a check for the damages to do as I please with. Same scenario, your friend can go blow the money on dirty prostitutes for all it matters and the other guy has to pay up. Even if cops got involved and went to court and the car is long gone, they will make him still pay up.