A federal court in Manhattan has ordered the payment of attorney fees in a high-profile legal dispute between two Hollywood actors who starred together in a 2024 romantic drama film. The ruling, issued by U.S. District Judge Lewis Liman in a 47-page order on Friday, concluded that actress Blake Lively made sexual misconduct complaints against her co-star Justin Baldoni without malice, justifying her request for legal fee compensation.
The case centered on allegations of sexual harassment during the production of the film adaptation of a popular novel. Lively accused Baldoni, who also directed and produced the film through his company Wayfarer Studios, of multiple instances of inappropriate behavior on set. These allegations included claims that he improvised kisses during filming, made unwanted comments about her physical appearance including remarks about her cleavage, and shared private information about her with other crew members.
Baldoni strongly denied all allegations and filed a $400 million defamation lawsuit in response to the claims. However, that lawsuit was later dismissed as part of settlement negotiations between the parties.
While the judge awarded attorney fees to Lively, he declined to grant additional damages she sought under California Civil Code Section 47.1, a law designed to protect sexual harassment accusers from retaliatory legal action. Judge Liman ruled that while it was understandable why Lively would seek such damages, she would need to file a formal counterclaim or independent lawsuit to pursue them. The law, he determined, did not create an exception broad enough to grant the relief she requested through the current procedural mechanism.
The legal battle between the two actors was scheduled to go to trial in May before a last-minute settlement was reached on May 4, bringing the federal proceedings to an abrupt conclusion. The settlement did not include financial compensation for Lively, but it preserved her right to seek attorney fees and potentially pursue damages through other legal avenues.
Prior to the settlement, Judge Liman had dismissed ten of thirteen causes of action in Lively’s lawsuit, including claims of sexual harassment, defamation, and civil conspiracy. The actress first made her allegations public in a 2024 interview with a major newspaper, after which she claimed Baldoni engaged in a publicity campaign to discredit her.
Both sides claimed victory following Friday’s ruling. Lively’s legal team, attorneys Esra Hudson and Michael Gottlieb, stated their client was gratified that the lawsuit demonstrated how laws like Section 47.1 create pathways for survivors to hold accountable those who use online attacks and retaliatory lawsuits as intimidation tactics. They noted that the settlement agreement preserves Lively’s rights to obtain damages through different procedural mechanisms.
Baldoni’s attorney, Bryan Freedman, characterized the outcome differently, stating that Lively received only limited attorney fees for a single claim in a case that lasted just months. He emphasized that ten of her thirteen claims were dismissed and that she received no damages in the settlement despite initially demanding over $300 million in fees and damages.
The amount of legal fees to be paid has not been disclosed. The film at the center of the controversy, based on a 2016 novel by Colleen Hoover, was a commercial success despite the legal disputes, earning more than $350 million worldwide during its theatrical release.
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