I just want to thank everybody so far for their opinions. I do appreciate them. Swank...if I were you, I would try to sound a little less like a jerk when preaching.
Here is little bit more back story and an update on how things ended up:
This is the first year we have been able to get an 8.5 Combo Mixed league going in the area. Me and the other captain have been very laid back and trying to do our very best to play every match, make it competitive, and attempt to draw more people in for next year. We have not had any problems, and this issue did not end up being a problem.
We are taking the court as a default win with my out-of-towner listed on the court. The defaulting captain understood my predicament. My out-of-towner had already played a match which made her ineligible to receive a refund. She is closer to where we would be for districts and is really excited about attending. This was not an ultra-competitive, cut throat league. My out-of-towner was just as much a part of this 8.5 experiment as the rest of us and deserves a chance to compete. The reason for me telling the other captain about my plan in the first place was, because of our openness and flexibility over the course of the season.
I understand the ethical arguments (to a point), but I don't see it as severe as some others have made it out to be. The fact is that the defaulting captain came to me first saying she was going to have to default the court, and it is ultimately up to me who I place as the "winners". Since this was a makeup match, I'm not going to have a team show up to the court just to tell them they can go home. It's pointless. Nobody benefits from a default, so why not help out a teammate who wants to play and have fun like the rest of of us? The "code of ethics" were not broken, and if bent, only slightly.
There are a ton of knowledgeable posters on this board. I'm normally only on the college tennis talk forum, but I will definitely start posting on here more. Thanks for your opinions.