Blake Lively Teases Ryan Reynolds’ $26K Handbag

However, Lively has now claimed that she's entitled to a mini trial for damages against Baldoni, even though their case is settled.

The actress said that she wanted to call experts to quantify her losses from Baldoni's failed $400 million defamation lawsuit against her in a hearing in federal court in Manhattan on Monday.

Her lawyers said that the sum she was seeking would be ‘very significant’ because of her reputational harm.

But Baldoni's lawyers objected and said that it would amount to an 'alternative trial.'

Even the judge at the court in New York appeared to be pleading with Lively to reconsider, telling her lawyers: 'Your client does have the ability to end this.'

Lively wants her legal fees paid plus costs, along with triple damages and punitive damages on top.

During the hearing, Lively's lawyer Michael Gottlieb did not put an exact figure on the amount of damages they would be seeking.

However, they would need expert testimony to 'quantify the reach of the allegation from the complaint [by Baldoni] that branded Miss Lively a liar.'

Gottlieb agreed when Judge Liman asked if that also included 'lost job opportunities from the alleged spread of this and harm to reputation?'

Judge Liman appeared dubious to such evidence being presented to the court outside of a trial. He said: 'All of which without a jury?' 

Gottlieb said that would be 'entirely appropriate.'

The actress's lawyer insisted that the law did indeed allow Lively damages and it was triggered when Baldoni sued her.

Baldoni's lawyer Ellyn Garofalo said there was 'no evidence of any sort' that Lively's was harmed by his defamation lawsuit.

She said that 'reopening' the case would amount to an 'alternative trial' which she suggested could take a long time to resolve.

At times during the hearing, Judge Liman appeared to be grappling with how to interpret the law, which only had one or two precedents given how new it was.

Judge Liman told both sides he was not trying to come up with 'something that's convenient for you all,' instead he was trying to figure out a 'statute that works.' 

Speaking after the hearing McCawley stated Lively was determined to press on and said, 'The damages [to Lively]are very significant.

'When you look at the harm that was caused to her, that's what it's meant to compensate, along with the attorney's fees and costs, and then the statute mandatory provides for trouble.'

Lively and Baldoni have reportedly spent $60 million on lawyers during their legal war, meaning the sum will likely be well into the millions. 

Lively had sought $160 million in damages after suing Baldoni for sexual harassment and launching a 'smear campaign against her after she spoke up against his alleged conduct on the set of It Ends With Us, which was released in August 2024.

In April a judge dismissed most of her case including all the sexual harassment allegations and weeks later both sides reached a settlement with no money changing hands.

Baldoni filed his lawsuit against Lively, her husband Ryan Reynolds and the New York Times in January 2025, a month after she sued him.

He sought $400 million in damages for what he claimed were false allegations. 

The case was dismissed in November last year because Lively initially made her allegations to the California Civil Rights Department meaning they were protected by privilege.

Gottlieb called Baldoni's lawsuit against Lively the 'prototypical suit' that the law in question was drawn up to prevent.

'Thus, as the prevailing defendant, Ms Lively is entitled not just to attorneys' fees and costs, but also compensatory damages tripled, and punitive damages,' he wrote.

Lively's actions have sparked alarm among some First Amendment experts who said it could put people off going to court.

Another unusual element of the hearing is that once the judge rules, neither side has the right to appeal. 

The actress has been slowly stepping back into the spotlight in recent weeks, such as attending the Met Gala last month in NYC. 

She also made a stylish appearance at a Fendi gathering in the Big Apple followed by her stopping by the Gucci High Jewelry Event.