ROCKLAND – A lawsuit filed in February against a former BankNorth employee, alleging the worker mishandled funds, has been dismissed.

BankNorth, formerly known as Peoples Heritage Bank, filed a lawsuit earlier this year in Knox County Superior Court accusing employee Michael A. Morrison of Rockland of making two $5,000 “transfer out” transactions at the Rockland office in May and July 2002.

The bank also alleged that Morrison’s cash drawer was $225 short on Aug. 21, 2002.

The bank sought $10,225 for what it called a “breach of fiduciary duty” by Morrison.

Neither Rockland lawyer Frederick Newcomb III, who represents Morrison, nor Portland lawyer David McConnell, who represents BankNorth, could be reached for comment.

In a response filed in February by the defense, Morrison denied the allegations and filed a counterclaim seeking damages for defamation.

The lawsuit was dismissed Aug. 6 with prejudice, which means a lawsuit may not be brought again in the case, and without costs to any party.