OP – the name of the state in which you reside and are being sued is requested because laws may change from state to state.
This recent thread may give you an idea about what you’re up against, because a problem with responding (as you have done) without seeking a venue change is generally the same everywhere. A difference is that, in that thread, it was possible to reference a specific state statute, and that can’t be done for yours. There might be exceptions in your state that would help:
https://forum.freeadvice.com/small-claims-courts-24/filing-motion-change-venue-441821.html
If you sent a letter with a venue challenge now, a court could honor it and dismiss the case to allow for proper re-filing. It could also deny the venue challenge and set a new hearing date. It could also determine that it was not timely and proceed. While the last is the least likely, you might feel uncomfortable not attending to see. If you did, the court is very likely to ask if you wish to have a hearing and conclude the matter, since you’re there anyway. Then, it would be your choice.
Without knowing your state, we can only guess. Without knowing the nature of the action, we would also have to guess whether it had bearing on venue.
If you’re going to provide the information, you might also include what you’re doing about the $10K in damages. If you’ve filed litigation for that, it could raise questions about consolidation of the cases where your case was filed. It could also raise the possibility of a counter-claim and set-off where his case is filed.
There are reasons for even the simple questions.