My company got a default judgement in small claims court ($3k) that I only learned about months after it happened because the state of California had a totally wrong address (mixed up with some other company) in their database. So I was served at some random address that was fortunately only 50 miles from me; “fortunate” because I still had to appear at that county’s courthouse to make any appeal.
The fact that The California State Corporations Board had the wrong address had no bearing on my appeal - that was “my fault” for not monitoring it and having it corrected.
So I filed for an actual appeal, appeared before the judge with the plaintiff (and a lawyer on my side that cost $2500), and won the appeal on the merits of the case. Had I not won, the state would have issued a bill and denied the business renewal unless paid.
It was an utterly bogus claim by a plaintiff that admitted he made a hobby of small claims court. Most of his cases he won because he defendants never showed up; as I didn’t originally because of the wrong service address.
Two lessons: check the state records for your business religiously (because it’s your fault if they get it wrong, no matter what), and fight the claim no matter what or you’ll become a target for future small-claims rewards because the judgements are public information.
(I genuinely want to hear this story)