Blake Lively dealt fresh blow as judge rejects bid for massive payout from Justin Baldoni following shock settlement

Blake Lively suffered the latest humiliation in her lawsuit against Justin Baldoni after a judge rejected her bid to seek potentially tens of millions of dollars in additional damages from her It Ends With Us star and director.

Judge Lewis Liman ruled Friday that the actress cannot seek treble damages and punitive damages under a California law designed to protect people who come forward with sexual harassment allegations.

In the harsh 47-page decision, he accused 38-year-old Lively of trying to “bring the law to its final point” and “circumventing” the purpose of the law.

Had the judge ruled differently, Baldoni and his production company, Wayfarer Studios, could have been forced to pay tens of millions of dollars beyond costs associated with defending the case.

But Lively scored a legal victory after Judge Liman ruled that Baldoni was entitled to recover the costs of a failed $400 million defamation lawsuit against him that could run into the millions.

The decision was a bitter blow to Lively, who continued her case against Baldoni even after both sides reached a settlement in New York last month.

But the actor scored a legal victory after the judge said Baldoni was entitled to seek reimbursement for legal fees and costs incurred defending the unsuccessful $400 million defamation lawsuit he filed against him.

Baldoni was seeking treble damages and punitive damages over the defamation suit, which he filed in January last year and was dismissed five months later.

Then in April of this year, Judge Liman also dismissed most of the lawsuit, in which Lively sought $160 million in damages for lost income and damage to her reputation.

The law Lively invokes in her bid to recover damages from Baldoni is California Civil Code Section 47.1, a relatively untested law passed in California in 2023 in response to the MeToo movement.

This law was designed to protect people who come forward with allegations of sexual impropriety from retaliatory defamation lawsuits; lawmakers believed that the threat of costly legal action could deter alleged victims from speaking out.

But Judge Liman said Lively’s request ‘circumvents processes designed to ensure the orderly, fair and equitable determination of civil cases in federal court.’

He said he was trying to bring “some sort of malicious prosecution or abuse of process claim” against Baldoni and the film studio that produced the movie Wayfarer.

Judge Liman rejected the idea of ​​holding a mini-trial ‘without the benefit of briefings’ as would normally be the case.

He said the law ‘does not constitute an end to the entire body of federal procedural rules carefully crafted to protect the rights of parties.’

Lively and Baldoni finally reached a settlement in their two-year legal battle in May, just two weeks before the case was set to go to trial. Above, on the set of It Ends With Us in 2024

‘Instead, it provides a narrow exception to the ordinary litigation process for specific and limited relief. ‘Compensatory and punitive damages are not covered by this exception.’

Judge Liman said he accepted Lively’s request for attorney fees because it was “based on much more solid ground.”

However, the judge said he had not made any findings at this stage about the ‘appropriate measure of fees’ or how much Lively should receive for her legal costs.

Sources told the Daily Mail that both sides spent as much as $60 million on highly qualified lawyers, but the fees would only cover the costs of defending Baldoni’s failed trial.

A source close to Lively said the decision was “procedural” and left the door open to seeking compensation “by other means.”

That could even involve an entirely new lawsuit to go after the money, the source said.

‘There was a procedural decision today. The court left the door open to seeking relief through other means, such as an independent lawsuit or countersuit, including in federal court, the source said.

Another bright spot in the decision for Lively was that the judge found no evidence of malice; This legal term means making a false claim knowing it is false.

According to Judge Liman, the ruling means Lively truly believes what she claims.

Judge Liman’s decision marked the beginning of the end in the case, which was expected to go to trial last month, before both parties reached an agreement.

The lawsuit between Lively, the star of the Gossip Girl series, and Baldoni, who claims to be a feminist, awakened the actor and director who was involved in It Ends With Us due to its message of domestic violence.

Documents obtained by the Daily Mail reveal Lively sought legal fees and additional damages in connection with Baldoni’s dismissed lawsuit

In the film, Lively plays Lily Bloom, a florist who begins a relationship with Baldoni, who plays abusive neurosurgeon Ryle Kincaid.

However, when the film was released in the summer of 2024, rumors of an on-set fight between Baldoni and Lively were overshadowed.

Then in December of that year, she filed a complaint with the California Department of Civil Rights, claiming she was harassed by Baldoni and others on set.

Among the allegations was that Baldoni “fat-shamed” her personal trainer by asking her about her weight: Baldoni claimed this was because he was worried about hurting her back during the scene where he lifted her.

Lively also claimed that Baldoni added unscripted kisses to a scene in which they danced together, and that her producer Jamey Heath broke into her trailer while she was breastfeeding her newborn.

According to Lively, Baldoni started an online smear campaign against her, which led to negative comments on social media that damaged her business and reputation.

The controversy surrounding the film turned it into a blockbuster, grossing $351 million worldwide.

Lively’s lawyers, Esra Hudson and Michael Gottlieb, said in a statement to the Daily Mail on Friday: ‘Blake Lively has won her claim under Civil Code Article 47.1. Today’s decision makes clear that Ms. Lively brought her claims in good faith, that there is no evidence that she acted in bad faith, and that she is the prevailing defendant under Section 47.1.

Lively’s team claimed that Lively lost tens of millions of dollars in turnover following the smear campaign following the release of the 2024 movie. This was denied by Baldoni-owned Wayfarer Studios

‘The court is paying Ms Lively’s legal fees and costs, and under Part 47.1 the judge explained that the defendant may seek relief using different procedural mechanisms.

‘The parties’ settlement agreement expressly protects Ms. Lively’s rights to these damages. Ms. Lively is pleased that her case demonstrates how Section 47.1 and laws like it have opened up an avenue for survivors to hold accountable those who weaponize online attacks and retaliatory lawsuits to intimidate and silence survivors.’

The Daily Mail has contacted Baldoni’s representatives for comment.

Early last month, the Daily Mail revealed that Lively was still pursuing legal fees and damages related to her unsuccessful $400 million defamation lawsuit against Baldoni – just days after the feuding parties reached a settlement.

In a joint statement announcing the settlement on May 4, neither side apologized but acknowledged that Lively’s allegations “deserved to be heard.”

Lively’s lawyers commented further, calling the settlement a “resounding victory” for their client.

‘By accepting this agreement and waiving his right to appeal, Justin Baldoni and all defendants will now face personal liability for abusing the legal system to silence and intimidate Ms. Lively.

By acknowledging that Ms. Lively’s concerns “deserved to be heard,” the defendants put an end, once and for all, to the fiction that Ms. Lively had “fabricated” her allegations of sexual harassment and retaliation.

From day one, Blake Lively’s mission was clear: to expose and hold accountable those who weaponize smear campaigns and retaliatory lawsuits to intimidate and silence survivors. “This mission continues,” the statement concluded.

Gottlieb, one of the Gossip Girl star’s lawyers, said the court should impose “severe and mandatory penalties against any party who files unsuccessful retaliatory defamation lawsuits against sexual harassment and retaliation complainants.”