fence issue - whats the best solution to deal with people who is totally self focused

[Jane Ho]

The property's fence is falling. Tenant request repair. I talked to the neighbors and provided a bid  from licensed contractor at $1200. She said want to go through insurance, then tell me her deductible is $1000 insurance estimated at $2156 so all she can get is 2156/2-1000=$78. Therefore, she wants me to give a letter stating as a neighbor, I refuse to comply with the good neighbor law therefore the insurance will give her $2156-1000 =$1156, then she will have money to pay. I refuse. I do not do things illegal or fishy or fraud. Then quiet for a few weeks, when I follow up, she tells me she quoted around also, the cheapest she find is $2000, and can get it done today! But need me to deliver a cashier check of $1000 today!

My 6th sense says it is like a scam and later find out (she admits) the person she is insisting on using is her own son! Not license, just a vet, but per her own words, 'they canceled his order, he is screwed, he needs work'. and also per her words: I will not pay any third party , since I can pay my son! or '78 dollars I got from my insurance and that's all I will contribute'. 

So there is good neighbor law, there is contractor license law that any project over $500 includes material and labor needs license. I checked, I don't believe his son fits in any exemption. Also, I don't want to be forced to use her son, since I have a much cheaper quote from a licensed contractor! 

I am thinking just paying the $1200 get my own contractor get it done. since if use her son, even I trust it is a fair bid, still will be $1000 out. For $200,  I trust my licensed contractor. My worry is because her son didn't get a penny will she purposely do something on her side to damage the fence and make it fall again next year