Blake Lively to Recover Legal Costs from Justin Baldoni

Judge Lewis J. Liman ruled Friday that actress Blake Lively is entitled to recover legal costs from actor and director Justin Baldoni. The decision follows a settlement in a legal dispute over the 2024 film It Ends with Us, though the judge rejected Lively’s requests for punitive and triple damages.

Liman stated Lively can recover fees and costs tied to her defense against a countersuit Baldoni filed after she sued him in December 2024. The judge based this decision on a California law intended to protect survivors of sexual harassment and discrimination from retaliatory lawsuits meant to intimidate or silence them.

Under this California law, plaintiffs must pay a defendant’s legal costs if a defamation claim brought in response to a lawsuit is dismissed. This requirement applies even if the evidence in the case has not been fully developed, according to the ruling.

Did You Know? It Ends with Us, released in August 2024, is an adaptation of Colleen Hoover’s 2016 bestselling novel and exceeded box office expectations.

Why did the judge reject punitive damages?

Judge Liman denied Lively’s claims for triple damages and punitive damages. He stated these requests did not fall within the “carefully crafted federal procedural rules designed to protect the rights of the parties.”

The court also noted that Baldoni and his production company, Wayfarer Studios LLC, provided little evidence that Lively acted with malice when she filed her initial suit. Liman indicated that malice would have been the only exception to the requirement for Baldoni to pay Lively’s legal costs.

Expert Insight: Samantha Carter notes that this ruling underscores a critical legal distinction: while Lively’s contractor status blocked her harassment claims, the specific California anti-retaliation statute provided a separate path to recover costs. This creates a complex landscape for production companies managing independent talent.

How did the legal dispute begin?

Lively accused Baldoni and Wayfarer Studios LLC of sexual harassment and retaliation in late 2024. She alleged the actor attempted to damage her credibility and public reputation.

Inside the ugly legal battle between Blake Lively and Justin Baldoni | 60 Minutes Australia

Baldoni denied the harassment and smear campaign allegations. He claimed Lively fabricated the complaints to gain creative control of the movie and countersued Lively and her husband, Ryan Reynolds, for extortion and defamation.

Liman dismissed Baldoni’s countersuit last year. Weeks ago, he also dismissed Lively’s sexual harassment claims, ruling she could not bring them because she worked as an independent contractor rather than an employee on the set.

What happens next in the case?

Lively and Baldoni settled the majority of their dispute last month before a trial on retaliation claims could begin. Lively received no money from that settlement but retained the right to pursue legal fees.

The judge did not address a specific method for calculating the legal fees in Friday’s ruling. Future proceedings may be required to determine the exact amount Baldoni and Wayfarer Studios LLC must pay.

Frequently Asked Questions

Why were Blake Lively’s sexual harassment claims dismissed?
Judge Liman dismissed the claims because Lively was an independent contractor on the movie set rather than an employee.

Did Blake Lively receive a cash settlement from Justin Baldoni?
No. According to the ruling, she received no money from the deal that settled the bulk of the dispute, though she was permitted to pursue legal fees.

What is the purpose of the California law cited by the judge?
The law aims to protect survivors of discrimination and sexual harassment from retaliatory lawsuits intended to silence or intimidate them.

How should the legal distinction between employees and independent contractors be handled in film industry disputes?