In a small legal victory for Sean "Diddy" Combs, a judge has set aside a $100 million default judgment in a Michigan lawsuit, even though the rapper remains in federal custody.

Diddy
Diddy John Lamparski/WireImage

The judgment stemmed from a claim by Michigan inmate Derrick Lee Cardello-Smith, who alleged that Diddy drugged and sexually assaulted him during a party in Detroit back in 1997, according to 'TMZ.'

During a motion hearing on Wednesday, Diddy's attorney, David Fink, successfully argued that Cardello-Smith had failed to properly serve Diddy, 54, with the lawsuit as required under Michigan law. Because of this procedural misstep, Judge Anna Marie Anzalone agreed to vacate the hefty $100 million judgment, giving the Harlem native a momentary reprieve in his ongoing legal battles.

 Derrick Lee Cardello-Smith
Derrick Lee Cardello-Smith Michigan Department of Corrections

Additionally, Judge Anzalone lifted the temporary restraining order that had previously been in place, which prevented Diddy from selling off his assets to cover the potential damages.

The judge noted that the three time Grammy Award winner is likely to win the case based on the statute of limitations, as the alleged incident took place over 25 years ago.

Sean "Diddy" Combs
Sean "Diddy" Combs speaks onstage at the REVOLT X AT&T 3-Day Summit In Los Angeles - Day 1 at Magic Box on October 25, 2019 in Los Angeles, California. Phillip Faraone/Getty Images for REVOLT

With the judgment now overturned, the case will move forward in a more traditional legal process. Diddy's legal team is expected to file a motion to have the case dismissed altogether in the coming months, potentially bringing this matter to a close.

Initially, the default judgment was granted because the "Last Night" rapper did not respond to Cardello-Smith's lawsuit, which is why the judge initially ruled in the inmate's favor, awarding the enormous sum of $100 million. Now that the judgment has been set aside, Diddy can defend himself in court.

Diddy plead not guilty to racketeering conspiracy, sex trafficking, and transportation to engage in prostitution, but remains in custody at the Metropolitan Detention Center (MDC) in Brooklyn, 'TMZ' reported, after a $50 million bail bid was rejected

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Diddy, Sean Diddy Combs