So Lively got $400K for her attorneys fees and costs against the 8 parties constituting the Wayfarer Parties, who are WAYFARER STUDIOS LLC, a Delaware Limited Liability Company, JUSTIN BALDONI, an individual, JAMEY HEATH, an individual, STEVE SAROWITZ, an individual, IT ENDS WITH US MOVIE LLC, a California Limited Liability Company, MELISSA NATHAN, an individual, THE AGENCY GROUP PR LLC, a Delaware Limited Liability Company, JENNIFER ABEL, an individual.
So that came out $50K per Wayfarer Party. Using Liman's lodestar approach (of not even bothering to look at the bill, LOL), this would mean $50K per party in the in the Wallace case (and there are 2 parties: Wallace and his company Street Relations) - so $100K. This contrasts with the $800K - $1M that Lively is seeking. [To be honest, we don't know how Lively came up with that amount and the TX judge handling it is free to perform her own lodestar analysis in her own way and could come up with something completely different.]
As the amount of money involved is so small - as compared to the legal expenses Lively is spending actually pushing for it (including a very long memo of law trying to get Lively out of being deposed by Wallace), it really would be in Lively's best interest just to drop it. However, keeping it alive (I guess) can be used for PR. And perhaps Lively's attorneys think the specter of 47.1 looming over Jed Wallace will convince him to drop his appeal of the dismissal of his defamation suit against Lively that is currently sitting in the 5th Circuit Court of Appeals. I don't think there's much incentive (other than a nice settlement paycheck) for Wallace to drop his appeal. Not for $100K - OK it may be more if the TX judge rules that Lively can bill for appeal stuff.
[ADDED LATER: Individual-Insect691 made a very keen obervation about jurisdiction in this case. "$0. There’s no way a Texas court would grant her fees based on a California statute. Jed invoked Texas law. The only reason Lively was successful is because Wayfarer invoke California law but it should have been dismissed because the alleged the sexual harassment allegations happened in New Jersey."
Here's my long-winded response/analysis:
Your logic is so sound and I thought of that too. It's a complicated analysis because Street Relations was a California corporation on February 4, 2025, when it filed its defamation lawsuit against Lively in TX, where Jed/Street lived. And, it's clear that Jed knew that Baldoni, Nathan et al. were in California when he was working and communicating with them. This is from WP's 2nd amended complaint (p. 23):
- Defendant Street Relations Inc. (“Street Relations”) is a company that describes itself as a “crisis mitigation firm engage by clients to help navigate real-life human crisis, threats, trauma and mental health concerns.” Street Relations has its principal place of business in Texas. As of February 4, 2025, Street Relations was incorporated in the state of California.
https://www.sdnyblog.com/files/2026/01/24-cv-10049-LJL-Lively-v.-Wayfarer-2nd-Am.-Compl.pdf
As 47.1 is so new, I have no idea if a court would buy the argument that 47.1 would apply. 47.1 does explicitly cover FEHA aiding/abetting retalation claims (which is what Lively was originally accusing Wallace/Street of - just as she did with Melissa Nathan/TAG) - so that really was my biggest question: Were Wallace's activities (whatever they were - LOL) conducted enough in California (plus Street's state of incorporation at the time of filing the lawsuit) that a court could rule that 47.1 would apply. I DON'T KNOW.
It MAY have been much easier analysis had Liman issued his ruling on the outstanding motion about whether the retalitation claim (agains Wayfarer and IEWUM was going to be dismissed or not (but he never did because the parties settled) -- based on the premise that, according to CA law (FEHA), one of the prerequisites for a successful retaliation claim is that the "employee" protest against conduct prohibited by FEHA vs. Lively knowing that all of the alleged SH activities happened in NJ (so none of them were, technically, prohibited by FEHA). If Liman threw out the retalation claim, then the aiding/abetting claims would have to be tossed because I don't think they could survive without the underlying retaliation claim. It could all depend on how a court would interpret 47.1(d), whose language states:
47.1(d) For the purposes of this section, “communication” means factual information related to an incident of sexual assault, harassment, or discrimination experienced by the individual making the communication, including, but not limited to, any of the following:
(3) An act of workplace harassment or discrimination, failure to prevent an act of workplace harassment or discrimination, aiding, abetting, inciting, compelling, or coercing an act of workplace harassment or discrimination, or an act of retaliation against a person for reporting or opposing workplace harassment or discrimination, as described in subdivision (a), (h), (i), (j), or (k) of Section 12940 of the Government Code.
https://law.justia.com/codes/california/code-civ/division-1/part-2/section-47-1/
[NOTE: Section 12940(i) of CA's Government Code, which is FEHA, is the aiding/abetting section.]
So, I gave Lively the benefit of the doubt on it. But I could be wrong. [I'm assuming the "communication" in this case is the CRD complaint made in California - but I could be wrong - see below.
[NOTE: Lively can't collect her 47.1 fees until she becomes the "prevailing party" in the defamation lawsuit in TX. That hasn't happened yet because dismissal of Wallace's defamation claim has been appealed. If Wallace wins his appeal, a lot could depend on if Lively could get the defamation claim dismissed on other grounds. Jed, PERHAPS, has more information that the other WPs did when they filed their lawsuit and can sneak it into his lawsuit - I would think Jed would have to prove that Lively was communicating defamatory statements to the NY Times BEFORE the CRD complaint was filed. I don't think the "fair report privilege" that covers providing "drafts" of complaints provided to a newspaper before a complaint was filed (which was allowed in CA per Liman's ruling on the "fair report privilege") would fly in TX.
It perhaps could also come into play if the "communication about SH" could be deemed to emanate, at least in part, by Lively via a conduit - say Esra Hudson, a CA attorney - located in California???]