Yeah, you and almost certainly the instructor would face charges.
It doesn't matter what the situation was, a person could literally throw themselves in front of your car when you're driving, its still the driver's fault. Pedestrians always come first, so again, even if it was entirely not your fault, you're still subject to the conditions of your driving.
Why weren't you aware of people on the road sides, what was your speed, etc. These are the sorts of questions that break down driver defenses in court. For the record, I'm not at all saying the above applies to you, just in general that if you had hit him, regardless of the consequences, its always the driver's fault. I don't believe there's a single defense a person can use against that sort of enquiry, the driver has to be responsible for their own driving, so if you're driving down a street they need to be consciously aware of all elements going on around them, obviously this can't be done all the time but it makes little difference in a hearing as you'd still almost certainly be convicted.