Judge Hears Arguments Over Attorney Fees After Lively-Baldoni Lawsuits Settled

U.S. District Judge Lewis J. Liman in New York on June 1, 2026, to argue whether Baldoni must pay Lively’s attorney fees and penalties under a California law.

Ellyn Garofalo, representing Baldoni, told the judge that Lively was attempting through the fee application to conduct “an end run around the jury trial” that was canceled when the parties settled in early May. Garofalo said reopening the matter would require new discovery, new experts, and new expert depositions.

Garofalo also stated that the settlement resolved the case without Baldoni or his production company paying any of the $300 million in damages Lively had sought.

Michael Gottlieb, representing Lively, argued that Baldoni’s countersuit was exactly the type of retaliatory litigation the California law was intended to deter. Gottlieb said the statute protects survivors of sexual harassment from prolonged legal battles. Judge Liman heard more than an hour of arguments but did not issue a ruling from the bench.

The underlying litigation began in December 2024 when Lively, 38, sued Baldoni, 42, and his production company Wayfarer Studios. Lively alleged that Baldoni made inappropriate comments about her appearance, violated physical boundaries during a love scene, and pushed for nudity in a birth scene against her wishes.

Weeks later, Baldoni countersued Lively, her husband Ryan Reynolds, and their publicist, alleging defamation and extortion.

Baldoni denied harassing Lively or running a smear campaign and said the complaints were fabricated to gain creative control of the film. Judge Liman dismissed Lively’s federal sexual harassment claims days before the settlement, ruling that she could not pursue them because she was an independent contractor rather than an employee.

A California statute allows significant penalties against parties who file unsuccessful retaliatory defamation actions against sexual harassment litigants.

Baldoni’s countersuit alleging defamation and extortion was dismissed by the judge last year. The film “It Ends With Us,” which Baldoni directed and in which both actors starred, was released in August 2024. The movie, an adaptation of Colleen Hoover’s 2016 novel, exceeded box office expectations despite criticism that it glorified abuse.

Baldoni previously starred in the television series “Jane the Virgin,” directed the 2019 film “Five Feet Apart,” and wrote the book “Man Enough,” which challenges traditional notions of masculinity. Neither actor attended the June 1 hearing.