Blake Lively ‘Nowhere Near Giving Up’ Despite ‘Massive Blow’ in Court Battle with Justin Baldoni (Exclusive)

Blake Lively is “nowhere near giving up” in her bitter court battle with Justin Baldoni, a source tells Star, despite suffering a major setback last week.

On Friday, April 3, a judge dismissed 10 of the 13 claims made by the 38-year-old actress against her It Ends With Us costar and director, 42, including allegations of sexual harassment.

“Blake is trying to stay strong,” says the source. “But there’s no doubt having such a big part of her case thrown out has been a massive blow.”

Still, “she’s vowed not to stop fighting,” the source reveals, as has her husband, Ryan Reynolds.

“Even if she wanted to, which she doesn’t, Ryan wouldn’t hear of it,” says the source. “This is a matter of principle for him. He’s furious that his wife was mistreated and he’s not going to let it stand.”

In the meantime, Reynolds, 49, is “doing everything he can” to help keep his wife’s spirits up, says Star’s source.

“He’s constantly reassuring her this is just one setback and not the end of the road because there are still parts of the case moving forward and a lot that has yet to play out,” explains the source.

Three of Lively’s claims, including breach of contract and FEHA retaliation, are still on the table and a trial date has been set for May 18.

She and Reynolds “both know this could drag on for a long time and that it’s going to be a tough process,” says the source, “but they are digging in and preparing for that reality, together.”