Should I just pay the plaintiff instead of fighting a California small claims case?

Sometimes, yes, and it's a genuinely reasonable choice in the right circumstances rather than simply giving up. If the underlying claim against you is factually accurate, the amount is under roughly $1,500, and you don't have a counterclaim of your own to raise, settling before the hearing date can be the more sensible move.

Doing so avoids having a judgment entered against you on the public record, and plaintiffs will sometimes offer a discount in exchange for immediate payment rather than waiting through the court process. If you go this route, get the settlement in writing and obtain a request for dismissal, form CIV-110, before you actually hand over any money.