Blake Lively awarded legal fees in Justin Baldoni dispute, court denies damages claim

Dubai: Blake Lively has secured another courtroom victory in her long-running legal battle with actor-director Justin Baldoni, with a US federal judge ruling that she is entitled to recover legal fees linked to Baldoni's previously dismissed defamation lawsuit. However, the court stopped short of granting her request for additional financial penalties and damages.

The latest ruling marks another chapter in the highly publicised dispute that emerged from the production of the 2024 film It Ends With Us, where tensions between the film's stars eventually spilled into multiple lawsuits, countersuits and months of legal wrangling.

According to The Telegraph, Judge Lewis Liman determined that Lively qualifies for attorneys' fees under a California law designed to protect individuals who report alleged sexual misconduct from retaliatory defamation claims. The court found no evidence that Lively acted with malice when making her allegations, a key factor in the decision.

While the judge agreed that Lively could seek reimbursement for legal costs, he denied her request for treble damages and punitive damages. According to court documents, the legal avenue used by Lively's team allows for recovery of fees and expenses but does not support the broader financial penalties she was seeking.

The dispute traces back to late 2024 when Lively accused Baldoni of sexual harassment and retaliation connected to the production of It Ends With Us. Baldoni denied the allegations and responded with a $400 million defamation lawsuit against Lively, her husband Ryan Reynolds and others. That lawsuit was later dismissed by the court.

Several of Lively's own claims were also dismissed during the course of the proceedings. Earlier this year, a judge threw out a majority of her claims, including sexual harassment allegations against Baldoni, while allowing a smaller number of claims to continue. Before the matter reached trial, both sides reached a settlement in May 2026, ending much of the litigation but leaving unresolved questions surrounding legal costs.

Following the ruling, both sides claimed the decision supported their position. Lively's legal team said the court made it clear that she brought her claims "in good faith" and that there was "no evidence" she acted with malice, adding that the decision provides survivors with a path to challenge those who use online attacks and lawsuits to silence them.

Baldoni's attorney Bryan Freedman, meanwhile, highlighted the court's rejection of Lively's damages claim, saying his team had "fought and won" against allegations that he maintains "never happened." He also noted that most of Lively's claims were dismissed and argued that the case ultimately showed there was "no sexual harassment, no retaliation, and no smear campaign."

The exact amount Baldoni may ultimately be required to pay in legal fees has not yet been determined. That figure is expected to be decided at a later stage after the court reviews detailed billing records and related submissions from both sides.