Blake Lively Willing to Drop Emotional Distress Claim, Justin Baldoni’s Team Says

Blake Lively might end up withdrawing the part of her lawsuit alleging emotional distress at the hands of Justin Baldoni, but there’s a catch holding things up … this according to his lawyers.

The actor’s legal team sent a letter to the judge in the case claiming Blake is considering dropping her emotional distress claim, because she doesn’t want to hand over her medical records … which Baldoni’s team requested from Lively.

Baldoni attorney Bryan Freedman says they’ve been in communication with Blake’s side about the records, but they’ve reached an impasse.

He says Blake wants to withdraw the emotional distress claim WITHOUT prejudice … meaning she’d be able to refile it later.

Of course, Baldoni wants it withdrawn WITH prejudice, so she can’t change her mind and refile.

Baldoni is asking the judge to either step in and make Lively hand over all the requested medical documents … or else agree to dismiss the claims entirely with prejudice.

Blake’s lawyers Esra Hudson and Mike Gottlieb tell TMZ … “Once again this is a routine part of the litigation process that is being used as a press stunt. We are doing what trial lawyers do: preparing our case for trial by streamlining and focusing it; they are doing what they do: desperately seeking another tired round of tabloid coverage.”

They added, “The Baldoni-Wayfarer strategy of filing retaliatory claims has exposed them to expansive new damages claims under California law, rendering certain of Ms. Lively’s original claims no longer necessary. Ms. Lively continues to allege emotional distress, as part of numerous other claims in her lawsuit, such as sexual harassment and retaliation, and massive additional compensatory damages on all of her claims.”

As you know … Blake and Justin are suing each other over what went down while working together on the movie “It Ends with Us.” Lively claims Baldoni sexually harassed her during the production.

Baldoni fired back by claiming Lively tried to undermine him to essentially take over production of the film herself and lied about sexual harassment in the process.