Federal Judge Lewis Liman issued a 47‑page ruling on Tuesday that rejected Blake Lively’s bid for enhanced damages under California Civil Code Section 47.1 in her ongoing fight with Justin Baldoni. While the decision bars her from seeking treble and punitive awards, it leaves open the possibility of recovering legal fees tied to Baldoni’s dismissed $400 million defamation suit.

Judge Liman’s 47‑Page Critique of Lively’s Legal Strategy

The ruling, according to the source, sharply rebukes Lively’s attempt to invoke the 2023 anti‑retaliation statute, describing it as a “potential claim for malicious prosecution or abuse of process.” Liman argued that the actress was trying to sidestep normal federal court procedures, a move the judge found inconsistent with the law’s purpose of protecting genuine whistle‑blowers.

Potential Tens‑of‑Millions Exposure for Baldoni’s Wayfarer Studios

Had the court sided with Lively, the decision could have exposed Baldoni and his production company, Wayfarer Studios, to liability far beyond the costs of defending the case, possibly reaching “tens of millions of dollars,” the report notes.. The judge’s refusal therefore caps the financial risk for Baldoni at the level of the underlying defamation claims.

Partial Victory: Right to Seek Legal‑Fee Reimbursement

Although Lively lost the bid for punitive damages, the judge affirmed her right to pursue reimbursement for the legal fees incurred while fighting Baldoni’s $400 million defamation suit, which was dismissed earlier. The exact fee amount remains undecided, with both parties having spent “upwards of $60 million” on counsel, according to the source.

Origins of the Conflict: “It Ends With Us” Set‑Off

The dispute stems from the 2024 film “It Ends With Us,” where Lively starred opposite Baldoni, who also directed.. Lively alleged misconduct during production, prompting Baldoni to file a defamation suit in January 2025. lively’s countersuit initially sought $160 million, most of which was dismissed in April, the source reports.

Unanswered Issue: Will Lively Receive Any Fee Award?

The ruling leaves open the question of how much, if any, fee award Lively will ultimately receive, as the judge did not set a figure. Additionally, the source notes that no evidence of malice was found on Lively’s part, suggesting the court believes she acted in good faith.