A U.S. court has ruled that actress Blake Lively is entitled to recover legal fees from Justin Baldoni but cannot seek compensatory or punitive damages under a California law she invoked following the dismissal of Baldoni’s defamation lawsuit against her, as per US media reports.
In an order issued Friday, U.S. District Judge Lewis Liman granted Lively’s request for attorneys’ fees and costs, finding that she acted “without malice” when she made allegations of sexual misconduct. However, the court rejected her bid for damages arising from Baldoni’s defamation claims, The Hollywood Reporter reported.
The ruling resolves the final outstanding issue in a legal dispute between Lively and Baldoni that ended in a settlement last month, avoiding a high-profile trial linked to allegations of sexual harassment on the set of It Ends With Us.
Under the settlement, Baldoni agreed not to appeal a court order dismissing his USD 400 million lawsuit against Lively. While the agreement did not provide monetary compensation, it allowed Lively to pursue recovery of legal fees and seek damages under California Civil Code Section 47.1, a law designed to protect sexual harassment and assault victims from retaliatory defamation lawsuits.
The court said the statute does not permit plaintiffs to bypass standard legal procedures to obtain damages.
“That law,” the judge wrote, “does not create an end run around the entire set of carefully crafted federal procedural rules designed to protect the rights of the parties.”
“It instead establishes a narrow exception to the usual litigation process for a specific and limited kind of relief,” Liman added. “Compensatory and punitive damages do not fall within that exception.”
Lively had sought attorneys’ fees as well as treble and punitive damages, arguing that Baldoni’s defamation claims caused her harm. The court found that the California statute entitled her to recover legal costs but not damages through the procedural mechanism she used.
“Allegations are insufficient on their own to demonstrate that statements were in fact made with malice,” the judge wrote. “That determination requires some evidence.”
The court will now determine the amount of legal fees to be awarded after reviewing billing records submitted by Lively’s legal team, led by attorneys Michael Gottlieb and Esra Hudson.
In a statement, Lively’s lawyers 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 the California law she asserted.
They added that Lively was pleased that the law provides “a path for survivors to hold accountable those who weaponize online attacks and retaliatory lawsuits to intimidate and silence survivors.”
Baldoni’s attorney, Bryan Freedman, welcomed the ruling’s rejection of Lively’s damages claim.
“We fought and won against a coordinated effort built on allegations of sexual harassment, retaliation, and a smear campaign that never happened,” Freedman said in a statement. “Ms. Lively demanded over 300 million in fees and damages, had 10 of her 13 claims dismissed, she then chose to settle and received nothing.”
He added: “Throughout this process, innocent people had their reputations unfairly tarnished. There was no sexual harassment. There was no retaliation. There was no smear campaign. The court recognized it, the record reflects it, and we have maintained it from the very beginning. We would not hesitate to stand up for the truth again.”
The ruling leaves open the possibility that Lively could seek additional damages through a separate lawsuit or counterclaim. Representatives for Baldoni’s production company, Wayfarer, did not immediately respond to requests for comment.
The legal battle stemmed from allegations connected to the production of It Ends With Us and evolved into a series of competing claims before the parties reached a settlement in June.