You know the answer: you hit a parked car! You're absolutely liable.
On one hand, you should have been looking while backing out so it would be your fault. He may get a citation for parking there, but you could have avoided an accident by looking first. You will be lucky if you are not cited for reckless and dangerous driving.
(In some states, contributory negligence on the part of the parked car's owner could reduce your liability, but you would still be At Fault. Your best option is to report vehicles that are illegally parked and avoid any possible accidents.)
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