DKstarjob, Since you tried the nice guy thing and this guy is being not so friendly (I am taking your word for what happened) then you should play his game out!!! Take your bike to the dealership and have them do a full estimate for all the repairs for the damage he caused. This will cover you if he refuses to pay and you have to sue him in small claims court. HE KNOWS WHAT HE DID AND YOUR OTHER ROOMMATE WITNESSED THE ACCIDENT so you can present him with the full bill for what he damaged. I bet when he sees what all he did costs to repair he will be quick to pay for your lever and if he continues to be disagreeable you can sue him for the full amount. I think at this point this guy is NOT your friend. I personally would be willing to pay $40 to any of my friends if I did $2 worth of damage never mind the damage you described. He knows he damaged your bike and did not tell you and now he is yanking you around over a few dollars while you are letting him off easy. Time for a little tough love my friend
I forgot to mention, Don't feel bad for not wanting to fix your own bike you did not damage it so you should not have to replace it and I don't see any issue with having the dealer replacing that part for you.