Blake Lively's attempt to secure damages in her legal dispute stemming from the set of "It Ends With Us" has been rejected by the court.

This decision concludes her last opportunity for a financial payout in the case, though the court did order Baldoni to cover Lively's legal fees.

This development is significant as it marks the end of a protracted legal battle that saw both sides vying for a public and legal advantage.

The dispute originated when Lively accused the director and his production company, Wayfarer, of orchestrating a plan to undermine her reputation in retaliation for speaking out about alleged misconduct on the film's set.

Lively's legal team had gambled on a novel application of a California law intended to shield sexual harassment victims from retaliatory defamation claims.

Her lead lawyer, Michael Gottlieb, had previously called the preservation of this claim a "core issue" after an eleventh-hour deal averted a trial.

However, U.S.

District Judge Lewis Liman ruled that the California law "does not create an end run around the entire set of carefully crafted federal procedural rules designed to protect the rights of the parties." The judge clarified that the law establishes a "narrow exception to the usual litigation process for a specific and limited kind of relief," and that "compensatory and punitive damages do not fall within that exception."

Baldoni's lawyers have since claimed victory, with Bryan Freedman stating on The Megyn Kelly Show that if the case was strong, Lively would have proceeded to trial.

He questioned the settlement, which involved no monetary payout to Lively, suggesting it "doesn't pass the smell test." Freedman had previously downplayed the significance of Lively's remaining claim, calling it "procedural."

Lively's spokesperson echoed this sentiment, characterizing the court's recent decision as "procedural." While Lively's team lost their bid for damages, they did secure legal fees.

The last remaining issue before the court is determining the exact amount Baldoni should pay in legal fees.

Despite this outcome, nothing prevents Lively from pursuing another lawsuit for damages related to the allegedly retaliatory defamation claim, though Freedman believes it is now "time to move on."