Joe Jackson began proceedings against Conrad Murray exactly one year after his son’s death, in June 2010.
He sought civil damages for a variety of issues, including loss of income and emotional distress.
A federal judge had refused to hear but it was later re-filed in a state court in Los Angeles.
Court documents show the request for dismissal was granted on Monday.
The filings do not elaborate on the reasons for dropping the case, but two lawyers involved with it were recently ruled ineligible to practice law in California.
Conrad Murray’s attorney, Charles Peckham, welcomed the decision.
“It’s good finally that this case is dismissed and gone,” he said on Wednesday.
“It’s pretty clear that Joe Jackson intelligently and smartly dismissed this case so he, his wife and children can focus on Michael Jackson’s life instead of the circumstances of his death.”
He added that Conrad Murray, who remains jailed while he appeals his conviction for involuntary manslaughter, was still pained by Jackson’s death and feels sorry for his family.
“His heart goes out to them,” Charles Peckham said.
Joe Jackson’s case claimed Conrad Murray repeatedly lied to paramedics and doctors about giving Jackson the anaesthetic propofol and that he did not keep adequate medical records, both issues that prosecutors raised against Murray during his trial last year.
Michael Jackson’s mother, Katherine, continues to pursue a case against concert company AEG Live alleging it negligently hired and supervised Murray, whose treatments were administered while the pop star was rehearsing for a 50-date comeback show at London’s O2 arena.
Her case is scheduled for trial in April.
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