Hey guys, thought I'd give some news as to what has happened after all in case anyone was interested...
The DJ sticks to his claims and has provided signed papers from an electronics repair company for the damages... you can imagine my amusement when I saw that the name under the signature had the same family name as the DJ
Anyway, I argued with the DJ saying this is an insurance problem and repeating what my insurance told me (That he has to make a claim to his insurance who will make a claim against mine if there is a legal basis for it). He argued for a long time against that which I didn't understand until... "I don't have insurance"
I ended the conversation there and then. Explained that not only do we have no legal contract together (I rented the space to the final client who hired a event planner, who hired the DJ) but that it's his responsibility to have insurance and I wont pay for him not having one...
In response I received a phone call from his lawyer last night who argued that I was legally obliged to pay (he had a lot of trouble explaining on what contract such responsibility was written since I didn't hire him) and then mistakenly blurted out that he didn't have any contract with anyone since he was hired under the table and didn't even have a company for his business... Probably not the best lawyer
So long story short, I don't know if anything was actually damaged and will probably never find out. I expect a few more menacing letters from the lawyer and maybe even a complaint at the police but legally there is nothing they can do since I am not responsible, not bound by any contract and have insurance...
So thanks for everyone's help & everyones suggestions
Case closed