Things always work out in the end or it is not the end, or something like that, right?
Out of the blue, the father emailed and said he planned to buy a camera for the daughter to use in her second year photography class and he wanted my assistance in locating one. By then, I had purchased a lovely replacement for my daughter, but felt that faced with this question I should say something. So I simply (with my wife's editing) explained that the camera they had returned was damaged and I described the extent of the damage. The father said he was unaware of any of this, felt terrible and said he would pay to get it fixed. I checked with a repair person and was told it wouldn't be easy to fix cheaply (cheaply being the operative) and I reported that back. The father offered to reimburse me for the cost of the replacement. I think that is fine and I have accepted. I may list the broken one for sale here soon listing all the warts and allowing someone handy to give what once was a very nice camera a new home.