Complaint Review: Casino Control Commission

I filed for a key license in July of 2002. Was given temp license. Resigned in Nov of 2002 and requested license put on standby. Request was granted and told license is in good standing.

In Feb of 2004, after applying for a casino in WV, was sent a bill for $1,086, due immediately for services rendered in 2002 when investigating me for license.
In May of 2004, sent a second notice. In Sept of 2004, sent a court notice that they are sueing me for a bill that they admit that they did not send out until 15 months after the services are rendered.

Is this legal?
Don't I have any rights here?
Should they not right this off because of their admitted billing error?

Apryl
Maurertown, Virginia
U.S.A.