Can a small claims judge legally rule a judgment against me when I asked for dismissal because the Plaintiff was suing the wrong party?

I appeared on the Plaintiff's Claim & Order to go to Small Claims Court.The Plaintiff alleges I owe her money.She claims I sold her car without her authorization. She claims I did not pay her for the vehicle. I did not sell her car. Plaintiff admitted in court she had an agreement with another party to sell the car. That party was present in court & testified as my witness. He told the judge that he sold the vehicle,not me, & he presented evidence to support that fact. I asked that the case against me be dismissed since the actual party who was authorized by the Plaintiff to sell the car was present & testified that I had absolutely nothing to do with the sale of the car.After hearing that the Plaintiff admitted that she had asked the other party, my witness, to sell her car, the judge had me step back & had the other party step into the defendant's position. The judge asked other party if he wanted to proceed with trial.He said no,due to a lack of preparation.Judge proceeded anyway.