Justin Baldoni's defense lawyer isn't ruling out a settlement possibility in Blake Lively's lawsuit against his client ... telling us his team is always focused on a positive overall outcome.

Bryan Freedman stopped to talk with us outside a Manhattan courthouse Thursday -- after a hearing in the case -- and he told us he thought the hearing went well for Baldoni.

We then asked if his client would consider a settlement ... and Freedman doesn't shoot it down -- though he does admit he can't say definitively one way or another.

Ultimately, BF adds, he hopes for good things for his client ... whatever that may be.

Lively's attorney, Sigrid McCawley, also spoke to assembled press outside the courthouse in a slightly more formal setting ... telling us and other reporters Lively's not just in it for the money -- she's in it to make a statement, as well as an impact on young women who are being harassed at work.

Based on that statement alone, a settlement seems far off ... though -- like Freedman -- it can't be ruled out as a possibility.

As for how Baldoni's doing, we got a little bit from Freedman ... and a little from Ellyn Garofalo -- another of Baldoni's attorneys. Watch the clip of Ellyn to get the lowdown on JB's mental state.

The trial's scheduled to start May 18 ... assuming the two sides can't come to terms.