yea man... sorry to see.. but that's a hard nope on driving it.. it's finished.

Your panhard bar is no longer attached, or at least close to it. And as mentioned above, this is literally the only thing keeping you rear axle from shifting laterally.

As awesome as it would be to win a lawsuit, don't bother wasting any time or energy. There are certain cases where you could have a very strong claim against premature rust/failure... this is not one of them. This is a NY car that looks like hasn't been maintained against rust very well.. (no offense at all) I mean just look at the links and rear end themselves.. those don't rust any faster than any other rig I've seen and are in poor shape at best in the pictures... this unfortunately is just what life looks like in the salt belt without any sort of preventative maintenance.. definitely time to let her go.