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Yep, if they drop charges they are liable for the damages.

I wasn't even thinking about it from that perspective. I was thinking about how expensive it is to fight a criminal charge and even when you "win" you still ending up owing the state money usually and if you pay a public defender they are on the states pay roll.

You got to get the scoop, @marcstevens is passing out get out of jail free cards, if you can grasp the concepts.