Justin Baldoni and his It Ends With Us partners lost their bid to dismiss or pause an insurer’s lawsuit over legal bills tied to Blake Lively’s sexual harassment claims.
U.S. District Judge Lewis J. Liman ruled Tuesday that Harco National Insurance Company’s case against Wayfarer Studios and defendants can continue in New York federal court.
The insurer has refused to cover defense costs from Lively’s since-resolved lawsuit, which accused Baldoni and others of mistreatment during the film’s production. Harco argues Wayfarer knew a legal claim was possible before the policies took effect. It cited language excluding circumstances the insured previously had “knowledge or information of.”
Baldoni and the other defendants asked Liman to halt the case while they pursue separate coverage claims against three insurers in California state court.
The judge declined, finding the disputes do not substantially overlap. Harco is not involved in the California action, and the policies differ.
Liman wrote that stepping aside would “undermine judicial efficiency” and require a California court to consider a dispute not filed there.
He also rejected claims that Harco rushed to court for an advantage, noting the company waited a month after announcing its decision while “defense costs were piling up.”
The ruling keeps Harco’s case moving forward in Manhattan.
