NEWSBlake Lively and Justin Baldoni’s Legal Fight Continues Over Who Pays the Bills
Blake Lively and Justin Baldoni returned to court over legal fees.
June 4 2026, Published 7:29 a.m. ET
Blake Lively and Justin Baldoni may have settled the central claims in their explosive legal fight, but the courtroom drama has not fully ended.
Lawyers for both actors returned to a New York federal court Monday, weeks after a settlement avoided a trial over Lively’s allegations that Baldoni led a campaign to damage her reputation after she accused him of sexual harassment on the set of their 2024 film It Ends With Us. This time, the dispute centered on whether Baldoni should be required to pay Lively’s legal bills and other penalties connected to his dismissed countersuit.
Why the Case Is Still in Court
Their lawyers argued over costs tied to the dismissed countersuit.
Lively’s attorney, Michael Gottlieb, argued that she is entitled to fees under a California law meant to protect sexual harassment survivors from malicious counterclaims. Baldoni’s countersuit, which accused Lively of defamation and extortion, was dismissed last year by U.S. District Judge Lewis J. Liman.
Baldoni’s lawyer, Ellyn Garofalo, accused Lively’s side of attempting an “end run” around the trial that was canceled when the parties settled. She told the court the settlement was reached without Baldoni or his production company “paying a cent of the $300 million in damages she was demanding.”
They debated penalties before a federal judge.
“It is quite common for parties to resolve all issues except attorneys fees,” said Randall M. Kessler, founding partner of Kessler & Solomiany, who is not involved in the case. “Oftentimes litigants, especially celebrities, feel that the court will recognize the harm done to them by ordering the other side to pay some or all of their legal fees.”
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Fees, Image and Vindication
The settlement left financial disputes unresolved.
“While the main claims may have been resolved, there is still the hurt and frustration felt by parties that they even needed to pay lawyers in the first place and they want the court (and public) to recognize that,” Kessler added.
The case continued despite the settlement.
“In a case like this, where each side can likely afford to pay their attorneys, it is usually more about image and perception. They may want the world to know that they were wrongly sued and they want the court to agree,” he noted.
“If the court agrees, an award of attorney's fees is a way for everyone to know the court thinks they are right and the other side did something wrong,” he said. “That affirmation is important to people who have been sued.”
