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First, although right now it may seem like a large sum right now, $110 is not a huge amount. Second, you only have to pay it when you move out. Assuming you aren't leaving anytime soon, this could be months/years away.
You are obviously dealing with someone who inherited his legal knowledge through DNA. My advice is to agree to pay it back when you move, and chalk up the $110 as a lesson in people (and trust me, a very cheap one).
Oh, and subtly bad mouth him to anyone who knows him. Keep tossing the phrase "for a hundred bucks this guy...."
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