Judge Orders Justin Baldoni to Pay Blake Lively’s Legal Fees Following Massive ‘It Ends With Us’ Fallout

U.S. federal judge has ruled that Blake Lively is entitled to have her legal fees covered by Justin Baldoni following their dispute, but she will not receive damages tied to his defamation claims against her.

The decision was issued on Friday by U.S. District Judge Lewis Liman and represents the final major ruling in the legal battle connected to the film It Ends With Us. The case had been heading toward a high-profile trial before both sides reached a settlement last month that ended Baldoni’s $400 million countersuit against Lively.

As part of that agreement, Baldoni gave up his right to appeal the earlier dismissal of his claims, but the financial consequences of the case remained unresolved.

The judge made clear that while Lively can recover attorneys’ fees under California law, she cannot use that statute to claim broader compensation for alleged harm. In his ruling, Liman wrote, “It does not create an end run around the entire set of carefully crafted federal procedural rules designed to protect the rights of the parties.” He added, “It instead establishes a narrow exception to the usual litigation process for a specific and limited kind of relief. Compensatory and punitive damages do not fall within that exception.”

The court also found that Lively qualifies as a prevailing defendant under the relevant California statute, which is designed to protect individuals who report alleged sexual misconduct from retaliatory legal action. Her legal team argued that her complaint was made in good faith and without malicious intent, a position the judge accepted when deciding she could pursue legal fee recovery.

Lively’s attorneys welcomed the ruling, saying it confirmed that her claims were brought legitimately. In a statement, her legal team said, “Today’s ruling makes it clear that Ms. Lively brought her claims in good faith, that there was no evidence she acted with malice, and that she is the prevailing defendant under Section 47.1.” They added that the decision reinforces protections for survivors facing retaliatory lawsuits and online attacks.

However, the court rejected arguments that she could also pursue compensatory or punitive damages under the same statute. Judge Liman wrote that such damages fall outside the scope of the law and must be pursued through separate legal channels if at all.

The ruling leaves open the question of how much Lively will ultimately receive in legal fees. Her attorneys are expected to submit detailed billing records, including hourly rates and total hours worked, for the court to review. Given the size and profile of her legal team, the final figure could be substantial.

Baldoni’s legal team, led by attorney Bryan Freedman, responded strongly to the outcome. Freedman said in a statement, “We fought and won against a coordinated effort built on allegations of sexual harassment, retaliation, and a smear campaign that never happened.” He added, “Ms. Lively demanded over 300 million in fees and damages… she then chose to settle and received nothing.”

He also argued that the court process ultimately supported their position that the most serious claims had been dismissed, while maintaining that no harassment or retaliation occurred.

Despite the ruling closing this phase of the dispute, the court noted that Lively may still explore other legal options in the future, including separate claims or counterclaims. Representatives for Baldoni and Wayfarer had no immediate public response beyond earlier statements.

The decision effectively resolves the remaining procedural issues in the case, leaving only the financial accounting of legal fees to be finalized by the court.

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