I think you handled it - esp since you got the desired results. I cannot believe that no one stopped him from hurting your child! Thats neglect on the adults part... I"m sure its a complicated situation for the Grandparents - Their daughter not taking care of her own child - the Grandmother probably has to a lot - who knows. I'm glad you were able to keep YOUR child safe.. at least one kid was being cared for!!!
I really wonder. Don't people want their children to grow up knowing right from wrong?