Judge Orders Justin Baldoni to Cover Blake Livelys Legal Fees After Dismissed Countersuit

A federal judge in New York has ordered actor and director Justin Baldoni to pay the legal fees incurred by actress Blake Lively in connection with a $400 million countersuit that was dismissed last year. The court will determine the amount of compensation Lively will receive.

The decision follows the dismissal of Baldoni’s countersuit on November 3, 2025. The lawsuit, filed on January 16, 2025, alleged defamation and extortion by Lively and co‑star Ryan Reynolds. Baldoni’s complaint was not amended by the court’s deadline, leading to its termination. Earlier, in June 2025, a judge granted motions to dismiss both lawsuits filed by Baldoni.

Lively’s attorneys, Esra Hudson and Michael Gottlieb, said the judge’s ruling confirms that Lively won her motion under Civil Code Section 47.1. According to the attorneys, “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.” The attorneys also noted that both parties had agreed to waive any appeals on future decisions after the settlement.

Baldoni’s lawyer, Bryan Freedman, responded that Lively was awarded only limited attorney fees for a single claim as part of a case that lasted only a matter of months. 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 legal dispute began after the release of the 2024 film It Ends with Us, in which Baldoni and Lively co‑starred. The film’s production was handled by Baldoni’s Wayfarer Studios, and the two actors had previously worked together on several projects. The countersuit was the largest civil claim filed in the case, but the court found no basis for the allegations.

The order to pay legal fees is part of the settlement reached between the parties. While the judge has not yet set a specific amount, the court will decide how much compensation Lively will receive. The decision underscores the court’s role in ensuring that parties who prevail in civil claims are not left with undue financial burden.

The case highlights the growing scrutiny of celebrity litigation in the entertainment industry. It also demonstrates how courts apply statutory provisions, such as Civil Code Section 47.1, to assess the merits of claims and the conduct of litigants.

At present, the only unresolved issue is the exact amount of compensation Lively will receive. The court’s determination will be announced once the calculation is finalized.

The settlement and the court’s ruling are expected to close the legal chapter between Baldoni and Lively, with no further appeals anticipated by either side.