Judge awards Blake Lively legal fees in dispute with Justin Baldoni

A Manhattan federal judge ruled that Blake Lively can recover legal fees and costs from Justin Baldoni, but not compensatory or punitive damages, leaving the dollar amount to be calculated later. The decision, issued by U.S. District Judge Lewis J. Liman in the Southern District of New York, closes the last unresolved issue after the two sides reached a May 2026 settlement to avert trial.

The ruling matters because it defines what Lively can still pursue under California Civil Code Section 47.1, a 2024 law aimed at protecting sexual harassment and assault victims from retaliatory defamation claims. Liman said the statute does not create an “end run” around federal procedural rules, limiting Lively to attorney fees and costs tied to part of the fight rather than broader damage awards.

That narrower recovery still carries real weight. The court will next review a breakdown of hourly rates and time spent by Lively’s lawyers, including Michael Gottlieb and Esra Hudson, and the bill could climb into the seven figures. For litigants in high-profile entertainment disputes, that kind of fee exposure can shape settlement leverage even after the headline conflict has ended.

The underlying case began in late December 2024, when Lively first complained to the California Civil Rights Department alleging sexual harassment and a retaliatory smear campaign tied to the film It Ends With Us, which she and Baldoni worked on together. She formalized that complaint into a federal lawsuit on December 31, 2024. Baldoni answered with a $400 million defamation and extortion suit against Lively, Ryan Reynolds, Leslie Sloane and others, but that case was dismissed in June 2025.

Much of Lively’s own case was later gutted on April 2, 2026, narrowing the dispute before the parties struck their May settlement. Under that agreement, Baldoni waived his right to appeal the June 2025 dismissal of his suit, preserving Lively’s path to seek fees. After the settlement, Lively’s lawyers called it a “resounding victory,” while Baldoni’s lawyer, Bryan Freedman, called it a “total victory” for the Wayfarer parties and said a fee request remained pending.

The fee dispute also sits inside a wider wave of litigation surrounding the film and its coverage. The New York Times separately sought attorney fees and costs from Wayfarer after Baldoni’s defamation claims against the paper were thrown out, underscoring how expensive the legal fallout has become and how fee awards can matter long after the merits are fought.