Some people get more than their share of "life experience" like this. Often it seems too much to bear.
After many years in the Canadian military, I was bored stiff and very frustrated, so I went overseas and joined the French Foreign Legion. For five years I toured the worst parts of the globe witnessing firsthand (and participating in) man's inhumanity to man. I buried many comrades and was hospitalized three different times myself.
One thing I learned in my school of hard knocks is that life isn't fair. Some people get dealt far more shit than others their whole life. The only advice I can give you is to recognize that life isn't fair, and there's no sense in worrying about things you have no control over. You can't control whether or not you have lupus, you can't control whether or not you have diabetes, and you can't control jerky people who want to sue you to get paid.
Understand that this advice comes from a Ch'an Buddhist (and a caucasian one at that), and one who meditates regularly, so what works for me may not work for you, but I highly recommend spending some time focusing on nothing but the present moment. Just sit, and breathe, and "be". You can't control the future, and you can't control the actions of others, so don't waste your energy worrying about them. You can control who you are and what you do, and thus you control how much pleasure you get out of life.
The lawsuit should be covered by your insurance whichever way it goes. Your insurance company will want to fight it anyways, since they're not particularily interested in writing a $125,000 cheque. If it can be shown how incredibly minor the accident was, it'll probably get tossed out.
As for the ticket, definitely go downtown and plead not guilty. You'll get a court date for several months down the road, and you can go fight it then. In the meantime, don't worry about it. If you like, you can get one of those traffic ticket lawyer firms to go in for you and fight it - they can usually get things knocked down or thrown out.
It takes a big man to cry, but it takes a bigger man to laugh at that man.