Your understanding about a civil lawsuit record is incorrect. You should not have played lawyer and advised your friend. Yes, that person's name is probably on a national database now.
Now the non-citizen could have a problem although it might not be too late to fix it. He or she needs to discuss this matter with an immigration LAWYER - not a lay peprson. I will transfer the question.
Please take a look at this blog post to see the number of things that are examined as a part of Naturalization applications.
This answer does not create an attorney-client relationship and is not meant to be relied upon as legal advice.
Your question seems to be whether the USCIS would consider this person to be a person of good moral character for naturalization purpose. Your question CANNOT be answered here. Each . case is CASE SPECIFIC. As rule, the USCIS only cares about crimes BUT.......I highly suggest that you seek either my legal advice or that of one of my esteemed colleagues. can be reached at either (770)955-785 or via e-mail at email@example.com. Our Spanish line is (678)591-9235. I will be in Chicago next month. Hope this helps. Wishing you well. THINK IMMIGRATION - THINK BOB BEER
This communication does not create an attorney client relationship. If I can be of further assistance, please feel free to contact me at any time at either (770)955-1785 or (678)576-9394 or via e-mail at firstname.lastname@example.org. THINK IMMIGRATION - THINK BOB BEER