Lutfi was suing the Spears family for battery, defamation and breach of contract, claiming Britney's father Jamie punched him in the stomach during the star's 2008 meltdown, and her mum Lynne branded him a "puppet master".
On Wednesday (31Oct12), Lynne and Jamie filed to dismiss the lawsuit and Los Angeles Superior Court Judge Suzanne Brugera granted their motion the following day (01Nov12) after deciding Lutfi's allegations didn't hold up.
Explaining her ruling, Brugera told the court, "I really thought long and hard, so the motions are granted... as to all the defendants and all the causes of action. That is the right thing to do, so I am going to do it."
Leaving the courtroom, Lutfi told reporters he plans to appeal.
Both sides are due back in court on Friday (02Nov12) when the jury will be officially informed that the case has been dismissed.