Blake Lively just scored a major win in her ongoing legal battle with “It Ends With Us” director-costar Justin Baldoni, but the court fight isn’t over yet.
Legal experts told Business Insider the dismissal of Baldoni’s $400 million defamation suit is an important win for Lively and her team, especially in a case where reputation is more at stake than money.
“Even though it was a New York judge, the judge applied California law, and that’s important because California is one of the most First Amendment-friendly states in the country,” Neama Rahmani, a former federal prosecutor and cofounder of West Coast Trial Lawyers, told BI.
Although the case was filed in New York, California laws apply because the events in question took place in the state.
“The fact that the vast majority of the claims were dismissed with prejudice, which means that they can’t be refiled, is a huge setback for Baldoni,” Rahmani added.
On Monday, a New York judge dismissed Baldoni’s $400 million defamation countersuit against Lively, her husband Ryan Reynolds, and The New York Times. Baldoni argued that the parties conspired to destroy his career with false allegations after Lively filed a federal lawsuit against Baldoni, which accused him of sexual harassment and retaliation.
In her complaint, Lively said that Baldoni and the producers of “It Ends With Us” orchestrated a smear campaign against her after she raised concerns about on-set conditions during the film’s production.
Baldoni has denied the allegations.
A spokesperson for Lively said in a statement to BI that the lawsuit dismissal is “a total victory and a complete vindication” of the actor.
“As we have said from day one, this ‘$400 million’ lawsuit was a sham, and the Court saw right through it,” said the spokesperson, who added that Lively plans to seek attorneys’ fees, treble damages, and punitive damages from Baldoni and his associates.
Why Baldoni’s suit was dismissed
US District Judge Lewis J. Liman ruled that Lively’s sexual harassment allegations in her lawsuit are legally protected speech.
The judge also ruled Baldoni’s allegations that Lively engaged in an extortion campaign to seize creative control of “It Ends With Us” from Baldoni did not qualify as civil extortion under California law.
Liman says Baldoni can refile an amended suit against Lively regarding his contract breach and interference allegations. Baldoni has until June 23 to file that amended complaint.
Baldoni’s camp would not confirm to BI whether they would refile, but a statement from his attorney, Bryan Freedman, suggested that the director has plans to do just that.
“Ms. Lively and her team’s predictable declaration of victory is false, so let us be clear about the latest ruling. While the Court dismissed the defamation-related claims, the Court has invited us to amend four out of the seven claims against Ms. Lively, which will showcase additional evidence and refined allegations,” Freedman said.
Freedman added, “Most importantly, Ms. Lively’s own claims are no truer today than they were yesterday, and with the facts on our side, we march forward with the same confidence that we had when Ms. Lively and her cohorts initiated this battle and look forward to her forthcoming deposition, which I will be taking.”
Camron Dowlatshahi of MSD Lawyers, who specializes in sexual harassment cases, told BI that the judge’s dismissal is still a major victory for Lively at a very early stage of the case.
“Baldoni can amend his complaint to properly allege a cause of action for defamation,” said Dowlatshahi. “His amended complaint will likely face another motion to dismiss and cannot manufacture facts, so it remains to be seen whether Baldoni can get to the discovery stage of his case.”
Lively’s lawsuit against Baldoni is still pending and could proceed to trial.
Baldoni’s fight isn’t over, an expert says
Amber Melville-Brown, a media law specialist and partner at Withers, told BI there may be some hope left for Baldoni if he targets Lively’s statements made outside her complaint, which may be less protected.
“Libel litigation can be akin to spinning the roulette wheel or sitting down to a game of chance,” said Melville-Brown. “So while Baldoni may have lost in this latest hand, it doesn’t mean all bets are off. It’s not necessarily game over because the judge has granted him permission to amend his claim.”
“That said, and I’m not a gambler myself. If he didn’t play his strongest cards at the outset, it’s not easy to see that he’s going to come up with a winning hand second time around,” Melville-Brown added.
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