The bitter legal battle between Blake Lively and Justin Baldoni over allegations of misconduct and retaliation tied to the making of \u201cIt Ends With Us\u201d moved closer to a conclusion Friday after a federal judge ordered Baldoni and his production company to pay Lively\u2019s attorneys fees related to his unsuccessful defamation lawsuit against her, while rejecting her bid for additional damages.<\/p>\n
In a 47-page order, U.S. District Judge Lewis Liman found that Lively was entitled to recover legal fees under a California law intended to protect people who report sexual misconduct from retaliatory defamation claims, ruling that Baldoni\u2019s side had failed to show she acted with malice when making her allegations.<\/p>\n
But Liman denied Lively\u2019s request for treble and punitive damages, concluding that the procedural mechanism her lawyers used permitted recovery of attorneys fees and costs but not broader financial penalties.<\/p>\n
Lively\u2019s attorneys, Esra Hudson and Michael Gottlieb, called Friday\u2019s ruling a victory for their client and emphasized that the judge found \u201cthere was no evidence she acted with malice.\u201d<\/p>\n
\u201cThe Court is awarding Ms. Lively attorneys\u2019 fees and costs and has explained that a prevailing defendant under Section 47.1 may seek damages using different procedural mechanisms,\u201d the attorneys said in a statement. \u201cThe parties\u2019 settlement agreement expressly preserves Ms. Lively\u2019s rights to obtain those damages.\u201d<\/p>\n
While the judge rejected Lively\u2019s request for additional damages in this particular motion, her legal team said she could still seek them through other legal avenues permitted under the statute.<\/p>\n
Bryan Freedman, Baldoni\u2019s attorney, sharply disputed Lively\u2019s characterization of the ruling, arguing that the court\u2019s prior decisions had substantially undercut many of her original claims.<\/p>\n
\u201cThere was no sexual harassment. There was no retaliation. There was no smear campaign,\u201d Freedman said in a statement. \u201cThe court recognized it, the record reflects it, and we have maintained it from the very beginning.\u201d<\/p>\n
The amount Baldoni and Wayfarer Studios ultimately may have to pay has not yet been determined. Lively\u2019s lawyers must still submit billing records and fee calculations for court approval.<\/p>\n
The ruling follows last month\u2019s settlement<\/a> between Lively and Baldoni, which came just before what had been expected to be a closely watched federal trial in Manhattan. Under that settlement, neither side received financial compensation. But the agreement preserved Lively\u2019s ability to seek attorneys fees and damages<\/a> under California Civil Code Section 47.1, a relatively new statute designed to shield sexual harassment and assault accusers from retaliatory defamation claims.<\/p>\n Lively sued Baldoni, Wayfarer Studios, Wayfarer CEO Jamey Heath and others in December 2024, alleging Baldoni and his associates orchestrated a coordinated effort<\/a> to damage her reputation after she raised concerns about misconduct during production of the film, which Baldoni directed and co-starred in. Baldoni denied wrongdoing.<\/p>\n Baldoni and Wayfarer later filed a $400 million defamation suit<\/a> against Lively, her publicist Leslie Sloane and her husband, Ryan Reynolds, that was dismissed last year<\/a>. Friday\u2019s ruling dealt specifically with whether Lively could recover attorneys\u2019 fees and damages tied to that dismissed suit under California Civil Code Section 47.1.<\/p>\n