NEW YORK, Jan 22 (Reuters) – A federal judge on Thursday began hearing arguments on actor Justin Baldoni's bid to dismiss actor Blake Lively's lawsuit accusing him of sexual harassment and waging a smear campaign in connection with their 2024 movie "It Ends With Us." Both sides are expected to make arguments at a hearing before U.S. District Judge Lewis Liman in Manhattan, after an acrimonious battle for more than a year that transfixed Hollywood and involved names including Lively's husband Ryan Reynolds and longtime friend Taylor Swift. Lively, 38, accused Baldoni, who directed and co-starred in "It Ends With Us," and his Wayfarer Studios of coordinating a scheme to silence her and others from speaking out about the hostile environment they allegedly created on the film's set. Thousands of pages of documents made public this week included Lively's claim that Baldoni, 41, pressured her unnecessarily to simulate nudity during a film scene where her character gave birth in a hospital. Also released this week were text messages between Lively and Swift, including a December 5, 2024, text message where the superstar singer likened Lively's and Baldoni's relationship to "a horror film no one knows is taking place." Lively is seeking unspecified damages for alleged harassment, invasion of privacy and violations of federal and state civil rights laws. A trial is scheduled for May 18. Jonathan Bach, a lawyer for Baldoni, told the judge that "context matters" and that in the context of making a film with adult situations, the "trivial things and petty slights" that Lively alleged didn't support letting her case continue. "It's not enough to show that sex or sexuality found its way into the workplace", Bach said. "Their burden is to show that it not only entered the workplace, but was used to discriminate against women." Bach also characterized Lively's case as being littered with "small potatoes," prompting the judge to say: "A whole bunch of little things can add up to a big thing." BALDONI HAS SAID HE ADDRESSED LIVELY'S CONCERNS In seeking a dismissal, lawyers for Baldoni said he resolved Lively's concerns about sporadic misunderstandings and "awkward comments" on the film set, including over her physical appearance, as soon as she raised them. They also said Baldoni had a right to hire a crisis management firm to defend his reputation after Lively began disparaging him publicly. Lively's lawyers countered that the dispute concerned more than merely "minor annoyances fueled by creative differences." They said a jury should consider the alleged "toxic environment" where Baldoni and Wayfarer ignored numerous women's claims of being sexualized and marginalized, and then pursued a strategy of "deny" and "attack." The dispute burst into public view in mid-December 2024 when Lively filed a complaint against Baldoni with the California Civil Rights Department, followed by her lawsuit, and a New York Times article titled: "'We Can Bury Anyone': Inside a Hollywood Smear Machine." Baldoni filed a $400 million countersuit accusing Lively and Reynolds of trying to destroy his reputation, but Liman dismissed that case last June. The judge also dismissed Baldoni's related $250 million defamation case against the Times. "It Ends With Us" generated mixed reviews but grossed more than $351 million worldwide according to Box Office Mojo. (Reporting by Jonathan Stempel in New York, editing by Deepa Babington and Philippa Fletcher)
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