Judge Overturns Inmate’s $100M Default Judgment Against Diddy

Sean ‘Diddy’ Combs is seemingly having a rollercoaster week. We are three days into his FBI arrest, arraignment on racketeering and sex trafficking charges, and remand to custody. Now, on the same day a judge denied his appeal for bail, a separate legal win has slipped through. Diddy has won an appeal against a $100 million default judgment for a sexual assault lawsuit filed by Michigan inmate Derrick Lee Cardello-Smith.

RELATED: New York Judge Issues Ruling On Diddy’s Appeal To Be Granted Bail (UPDATE)

Michigan Inmate’s Default Judgment Against Diddy Thrown Out For THIS Reason

As previously reported, on Sept. 9, Judge Anna Marie Anzalone ruled in favor of Derrick in a civil lawsuit alleging a 1997 sexual assault. Smith claimed that he met Diddy at a Detroit restaurant and that the music mogul touched his left buttocks while he was having sexual intercourse with a woman. Additionally, Smith claimed that Combs implied he had sexual intercourse with him while Derrick was unconscious.

Judge Anzalone awarded the inmate $100 million after Sean Combs reportedly failed to appear for the Sept. 9 virtual hearing and didn’t file a motion in response to the lawsuit. At the time, reports stated that Combs was ordered to begin paying Derrick in $10 million monthly installments starting Oct. 1.

However, as of Sept. 18, that payment schedule no longer applies. Diddy’s attorney, David Fink, told TMZ that a Michigan judge set aside the $100 million payout. During a motion hearing, Fink argued that Smith failed to effectively prove he had served Diddy with the civil lawsuit in compliance with Michigan law. Furthermore, a restraining order against Diddy has also been dismissed.

As previously reported, Derrick Lee Cardello-Smith formally told the court he served Diddy with the suit on July 6, 2024. Combs’ other lawyer, Marc Agnifilo, shut down this claim in a statement to The Shade Room. Agnifilo pointed to Derrick’s record as a “convicted felon and sexual predator” and stated that “Mr. Combs has never heard of [Derrick], let alone been served with any lawsuit.” 

RELATED: Diddy Seeks To Overturn $100 Million Judgement In Sexual Assault Case Against Michigan Inmate

Here’s What Happens Next

Well, based on Wednesday’s ruling, it appears a judge agreed with Diddy’s legal team. His quest to overturn the default judgment was successful.

Per TMZ, the next step will be for Diddy’s legal team to file a motion to dismiss the lawsuit. It’s unclear if that has already happened.

As suggested, Sean Combs’ hands are full this week as he battles his federal charges from behind bars. As of Tuesday, Sept. 18, the music mogul is in pre-trial detention at the Metropolitan Detention Center in Brooklyn, New York.

RELATED: Explained: Sean ‘Diddy’ Combs & The Unsettled Sexual Assault Lawsuits Against Him