Judge Orders Justin Baldoni to Pay Blake Lively's Legal Fees; Denies Additional Damages

Judge Liman found that Lively qualified as a prevailing defendant under California Civil Code Section 47.1 because she acted without malice when making her sexual misconduct complaints, and Baldoni's legal team failed to produce sufficient evidence to the contrary. However, the judge ruled that treble and punitive damages cannot be pursued through a Rule 54(d) post-judgment motion in federal court, as doing so would circumvent established federal procedural rules — including potential Seventh Amendment jury trial rights — that govern civil damage claims. The ruling closes out the main litigation after Lively and Baldoni settled in May 2026, just two weeks before trial, with no money changing hands; Lively had 10 of her 13 original claims dismissed before the settlement. The court will now assess the amount of legal fees owed, which could be substantial given Lively's high-profile legal team led by Michael Gottlieb and Esra Hudson. Lively's attorneys declared victory, emphasizing the ruling's good-faith finding, while Baldoni's lawyer Bryan Freedman countered that Lively received only limited fees and had failed in her broader damages bid. The settlement agreement expressly preserves Lively's right to seek damages through other procedural mechanisms, such as an independent lawsuit or counterclaim. Reports indicate the two sides spent a combined estimated $60 million over the roughly 18-month legal dispute.