A California court ruled that Justin Baldoni must cover Blake Lively's legal fees in their ongoing dispute, marking a significant development in the actor-director's defamation battle with his "It Ends with Us" costar. The court rejected Lively's attempt to secure damages under a California statute designed to protect sexual harassment and assault victims who report misconduct.

The ruling addresses the financial burden Lively faced mounting a legal defense against Baldoni's counterclaims. By ordering Baldoni to foot the bill, the court essentially validated aspects of Lively's position while limiting the scope of remedies available to her. The decision complicates the legal landscape for both parties as the case progresses through California's court system.

Baldoni sued Lively after she publicly accused him of sexual harassment and workplace misconduct during the production and promotion of the film adaptation of Colleen Hoover's bestseller. Lively alleged he created a hostile work environment and attempted to damage her career following her refusal of his advances. The conflict became public in December 2024 when Lively filed her complaint, igniting industry-wide conversations about power dynamics on set and accountability in Hollywood.

The court's rejection of damages under California's anti-SLAPP statute (Strategic Lawsuit Against Public Participation) suggests the judge found merit in Baldoni's underlying defamation claim, though this specific ruling addresses the procedural question of legal costs rather than the substance of the harassment allegations. This distinction matters. Courts can order fee-shifting in anti-SLAPP cases where a defendant demonstrates the plaintiff's claims lack legal merit.

The ruling represents a mixed outcome for Lively. While securing attorney fee reimbursement provides financial relief, the rejection of broader damages protections under the victim-shield statute narrows her legal remedies. The case remains active, with both sides preparing for what promises to be a closely watched trial examining harassment allegations and professional retaliation in the entertainment industry.