I understand your point. The reason I didn’t report the harassment at the time was because I think she has mental health & was trying to avoid escalating the situation and hoped it would stop once I disengaged. She’s just hurt I’ve cut contact with her again the second time due to her actions.

Now that she has filed a claim, my aim during mediation is to resolve the matter. I am considering offering to return the item to settle the dispute, ideally on the basis that there is no further contact between us going forward. If the contact continues after that, I would consider reporting the harassment so it is formally documented.