Who Won Blake Lively and Justin Baldoni’s Latest Legal Battle? ‘This Ruling Is Still Not the End,’ Legal Experts Say

Elizabeth RosnerFri, June 12, 2026 at 11:38 PM UTC

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Blake Lively and Justin Baldoni attend the "It Ends With Us" Premiere on August 06, 2024 in New York City.Credit: Gotham/WireImage; John Nacion/Variety via Getty -

On June 12 a judge ruled Blake Lively can pursue attorneys' fees tied to dismissed claims while denying her request for treble and punitive damages

The ruling stems from Blake Lively and Justin Baldoni's legal battle and post-settlement disputes in the case

Legal experts say the decision remains open to interpretation, with the dispute still ongoing

Blake Lively and Justin Baldoni's legal battle tied to It Ends With Us saw a new ruling on June 12 allowing Lively to pursue attorneys' fees tied to dismissed claims, while denying her request for treble and punitive damages—a decision experts say remains open to interpretation.

The ruling stems from post-settlement proceedings in the case. Lively first sued Baldoni for sexual harassment, followed by a retaliatory public smear campaign in December 2024 — claims Baldoni denied. He filed a $400 million counterclaim that was later dismissed.

The case was ultimately resolved just two weeks before trial though a dispute still remained over whether Lively had the right to pursue attorneys' fees and damages related to Baldoni's counterclaim, under a California anti-retaliation law known as Civil Code Section 47.1.

Legal experts tell PEOPLE the judge's latest decision over attorney's fees is not straightforward, with competing interpretations over how it should be viewed as litigation continues.

"Blake Lively is the clear winner with the court's recent ruling, holding that she is entitled to attorney's fees and that her Section 47.1 privilege applies. The ruling directly arises out of Justin Baldoni's defamation suit, which the court effectively determined was retaliatory," entertainment attorney Jordan Matthews of Los Angeles-based Holtz Matthews LLP told PEOPLE.

Justin Baldoni and Blake Lively are seen on the set of "It Ends with Us" on January 12, 2024 in Jersey City, New Jersey.Credit: Jose Perez/Bauer-Griffin/GC Images

But attorney Richard Shackleton says the ruling also narrows what Lively may ultimately recover.

"The judge's ruling today is a better outcome for Baldoni because it eliminates the possibility of treble damages or punitive damages, which would have been far more significant than the attorneys' fees now at issue," he said.

Shackleton says the ruling now shifts the focus to the next phase of the case: determining attorneys' fees.

"I don't see in this ruling that there's been a determination of the amount of attorneys' fees. They need to submit that," he said. "She only gets the fees incurred in getting that defamation claim dismissed. She's not going to recover the fees incurred on her own affirmative claims that were dismissed or settled."

He said the process will now depend on billing records and whether the parties can reach agreement.

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"Sometimes the billing records aren't that clear, so she's got to submit billing records from her attorneys, and hopefully they segregated and expressly indicated which ones applied to the defamation counterclaim," he said. "Sometimes the parties negotiate to try to resolve this issue out of court."

Shackleton added that while the fees are limited in scope, the dollar amount could still be significant.

"It ought to be a six-figure amount," he said. "The defamation counterclaims were lodged and there was a successful motion to dismiss, but a lot of money was spent on discovery and summary judgment motions for the larger case. I would think you're talking about several hundred thousand dollars."

Shackleton noted a heavy roster of attorneys involved in the case, "so I bet it's higher than I might think."

Matthews added that the dispute may not be finished. "This ruling is still not 'the end,'" he said, noting a settlement over fees is still possible. "Lively is likely going to file a motion demanding attorney's fees, or the parties are going to release a statement confirming that this issue is settled."

In a statement to PEOPLE, Lively's attorneys Esra Hudson and Michael Gottlieb called the decision a significant step under California law.

"Blake Lively won her motion under Civil Code Section 47.1," they said. "Today's ruling makes it clear 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."

Baldoni attorney Bryan Freedman pushed back, saying Lively only secured limited relief.

"Ms. Lively was only awarded limited attorney fees for a single claim as part of a case that lasted only a matter of months, nothing more," he said. "Notwithstanding that all of her claims were thrown out, Ms. Lively then pivoted to exploit a California law intended to protect real victims in what proved to be a fruitless mission to obtain damages. Once again, she failed."

on People

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Source: “AOL Entertainment”