There seems to be a way to avoid laptop lid freeze.
I'm using Lubuntu 14.04 and it utilises Xfce power manager.
When it is used to monitor power events, lid close always freezes the laptop.
However, when you install acpi-support the freeze no longer happens but the 
screen remains on when the lid is closed.
If you just want to power off your screen when closed, go to Xfce power manager 
settings and choose 'nothing' in the 'when laptop lid is closed' field.
If you want your laptop to suspend when the lid is closed, you need to exit 
Xfce power manager to let acpi-support handle the event.
So the key seems to be to install acpi-support to avoid freeze.
Good luck and please post what power manager you are using.
This bug seems to be related to Xfce power manager rather than 
xserver-xorg-video-intel

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https://bugs.launchpad.net/bugs/1254131

Title:
   Lubuntu 13.10 lid close freeze

Status in “xserver-xorg-video-intel” package in Ubuntu:
  Expired

Bug description:
  I have a Dell latitude d505 laptop running Lubuntu 13.10.
  When I close the lid, the screen becomes blank and the mouse cursor freezes 
and can't be moved.
  The backlight is still on but the system is completely unresponsive.
  I can't even ssh into the laptop to shut it down properly but have to pull 
the plug.
  When I go to suspend from the logout menu, it suspends fine and I can close 
the lid and when I lift it it wakes properly.
  I tried changing the options in xfce-power-manager to disable suspend but to 
no avail.
  I also tried editing the /etc/systemd/logind.conf but nothing worked.
  Whenever the lid is closed system hangs.

  ProblemType: Bug
  DistroRelease: Ubuntu 13.10
  Package: xserver-xorg-video-intel 2:2.99.904-0ubuntu2
  ProcVersionSignature: Ubuntu 3.11.0-13.20-generic 3.11.6
  Uname: Linux 3.11.0-13-generic i686
  ApportVersion: 2.12.5-0ubuntu2.1
  Architecture: i386
  Date: Fri Nov 22 19:55:36 2013
  InstallationDate: Installed on 2007-01-11 (2507 days ago)
  InstallationMedia: Lubuntu 13.10 "Saucy Salamander" - Release i386 
(20131016.1)
  MarkForUpload: True
  SourcePackage: xserver-xorg-video-intel
  UpgradeStatus: No upgrade log present (probably fresh install)
  --- 
  ApportVersion: 2.12.5-0ubuntu2.1
  Architecture: i386
  DistroRelease: Ubuntu 13.10
  InstallationDate: Installed on 2007-01-11 (2507 days ago)
  InstallationMedia: Lubuntu 13.10 "Saucy Salamander" - Release i386 
(20131016.1)
  MarkForUpload: True
  Package: xserver-xorg-video-intel 2:2.99.904-0ubuntu2
  PackageArchitecture: i386
  ProcVersionSignature: Ubuntu 3.11.0-13.20-generic 3.11.6
  Tags:  saucy
  Uname: Linux 3.11.0-13-generic i686
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups: adm cdrom dip lpadmin plugdev sambashare sudo
  --- 
  ApportVersion: 2.14.1-0ubuntu3
  Architecture: i386
  DistroRelease: Ubuntu 14.04
  InstallationDate: Installed on 2014-04-17 (2 days ago)
  InstallationMedia: Lubuntu 14.04 LTS "Trusty Tahr" - Release i386 (20140416.2)
  Package: xserver-xorg-video-intel 2:2.99.910-0ubuntu1
  PackageArchitecture: i386
  ProcVersionSignature: Ubuntu 3.13.0-24.46-generic 3.13.9
  Tags:  trusty
  Uname: Linux 3.13.0-24-generic i686
  UpgradeStatus: No upgrade log present (probably fresh install)
  UserGroups:
   
  _MarkForUpload: True

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