Out with wife, wife's friend, and a couple of young kids in the car. We are visiting a friend with young kids who has moved into a new neighborhood. As we leave the friends house, a crazy old lady next door comes out with a sign she has made on her printer that says "YOU ARE ILLEGALLY PARKED" and accuses me of parking in front of her house in front of a tree, only inches away from where it could be obstructing her driveway. I ask "honestly don't you have anything better to do like read a book or watch television? What is this really about?" And the lady goes on to say she can call the police and have the car towed and she is going to write down the license plate number, etc. I ask what she wants me to do and she says park in front of a different house. The car was legally parked on a public street. I tell her it's a free country and I will park wherever I want and if she's a policeman to go ahead and write me a ticket, and if not for her to have a very nice day.

When I get back in the car, wife starts ranting and raving about I shouldn't have said anything to the crazy old lady, why do I have to be such an asshole, what if she calls the police and they tow the car away, etc.

After a few minutes of me being quiet while wife continues to be in panic mode, I pull the car over and say I will drive again when it's quiet in the car, and that she can hop out and I will drop off wife's friend and kids and come back and pick her up... Wife became quiet and sulked.

Is stopping the car reactive and butthurt? Proper behavior? Should I have just said "So sorry, Ma'am!" to the crazy old lady? Not stopped the car?

Is it better to tone down IDGAF in front of group of people and just say "Gee, sorry!" or is that just failing a giant shit test?

Interested in how you guys would handle something like this.