The quarterback's former agent, Ben Dogra, filed the lawsuit in March 2019 claiming Griffin owed him $659,000 in fees from marketing and endorsement deals from 2014-16. He was initially supposed to pay 15 percent of his deals to CAA Sports, which fired Dogra in 2014.
Griffin remained with Dogra until parting ways in 2018.
The case was dismissed as it passed California's statute of limitations, where the agreement was signed.
"This ruling is a significant victory for RG3," Griffin's attorneys, Kevin Fritz and Mitchell Schuster, said in a statement.
Griffin was a popular figure upon entering the NFL, winning the league's Offensive Rookie of the Year award in 2012 after being drafted with the No. 2 overall pick behind only Andrew Luck. He also earned a Pro Bowl selection that season while leading Washington to the playoffs.
Injuries have derailed the 2011 Heisman Trophy winner's career since then, and the Baylor product is now a backup with the Baltimore Ravens. The 30-year-old has earned $33.2 million during his eight seasons in the NFL, per Spotrac.