The ongoing case which was brought by the star's estate against the city of Los Angeles has been dismissed after lawyers acting for both sides agreed it could be re-filed later.
Originally filed in 2003 a mistrial was declared in 2005 when it became evident that LA police had withheld vital documents reports the bbc.
The judge ruled that a police detective had intentionally concealed statements from a prison informant possibly implicating two officers in the murder.
The City of Los Angeles were made to pay more than $1m (£650,000) to Wallace's family for the errors.
The rapper, Christopher Wallace, also known as Biggie Smalls, was shot dead in March 1997.
A lawyer for the rapper's estate has said that the dismissal could now see investigators make arrests over the death but the process could take up to three years dependant on the ongoing investigation.
The rapper Notorious BIG was signed to Bad Boy records in 1993, making two albums 'Ready to Die' and 'Life After Death'.
Notorious BIG was gunned down in a car passenger seat only minutes after leaving a party in Los Angeles 13 years ago.