Gossip Girl Sued -- Left in Stitches

10/23/2008 7:15 AM PDT

Gossip Girl Sued -- Left in Stitches

Blake Lively has a date with a tailor -- in small clams court.

Brooklyn tailor Angela Bilotti claims Blake hasn't paid $500 for work she did on the dress (left) Lively wore to the Teen Choice Awards

We're told Blake was "extremely kind" during the fitting and even offered to walk over to an ATM to get cash out for the work, but Bilotti told her not to worry. Since then, Bilotti alleges she's tried to contact Blake directly to no avail.

Blake's rep tells us Bilotti botched the job on the dress and Lively agreed to pay her half the fee.