updated 03/14/2011 AT 3:00 PM ET
•originally published 03/14/2011 AT 3:15 PM ET
Mel Gibson has a reason to smile.
Following Friday’s conclusion to a long-running court battle with ex-girlfriend Oksana Grigorieva, the Beaver actor spent the weekend celebrating the birth of his third grandchild.
“He was overwhelmed with emotion,” a pal of Gibson, 55, tells PEOPLE of his daughter Hannah’s baby boy. “He gets that way around babies. … He was overjoyed.”
Family bonding being a theme, Gibson also spent a portion of the weekend with his and Grigorieva’s daughter Lucia, 1.
“He always has a great time with her,” the pal says.