"I said from the start that this was a frivolous lawsuit and one that was intended to be a political swipe," said Malloy, who successfully ran for reelection in November. "There was absolutely no truth to it whatsoever."
The lawsuit was filed Aug. 4 by a Chesterfield County family who claimed Malloy had cheated them out of a nearly $15,000 insurance settlement. Malloy was serving as legal counsel for the family in an automobile accident case.
According to the complaint against him, Malloy was accused of holding out $14,868.97 in funds from a mentally incompetent man who suffered brain damage in an automobile accident in May 1999.
Malloy filed an answer and counterclaim Aug. 15 that stated the family's accusations were false and that the money was not turned over to the family because of medical liens that prevented him from doing so.
"His Medicaid lien alone exceeded the amount of recovery," Malloy said.
After a review of the case, the court agreed with Malloy and the lawsuit was dismissed as frivolous.
"It's an unfortunate case and unfortunate for the persons involved, but I assure you everything on our end was handled accordingly," Malloy said. "With the timing of the lawsuit and the way it was handed out to all of the local papers, it was obvious the intent of this lawsuit was solely to damage my political campaign."
The lawsuit did minimal damage as Malloy easily beat his opponent in the November election and retained District 29 seat in the State House.
At the time of Malloy's answer and counterclaim, Malloy also turned over all funds in question, as well as all notices of applicable liens, to the family's new attorney, George Gregory of Cheraw.