Chip and Joanna Gaines have a $1 million lawsuit on their hands and the "Fixer Upper" star has recently responded to the lawsuit brought on by former business partners. Chip wants to know how come none of his former friends called or emailed him in the years since he's been on HGTV with his wife. The former Magnolia Realty partners are suing the home remodeling show star because they said he pulled a sneak move on them in order to not have to share the profits of his popular reality TV show.
'Fixer Upper' star accused of buying out partners without letting them know about the HGTV show
The "Fixer Upper" star's former Magnolia Realty business partners claim that Chip Gaines offered to buy them out for a measly $2500. If they had known that HGTV had already agreed to greenlight the "Fixer Upper" show, certainly they would have wanted more money or even just to be a part of the show.
Earlier this week John L. Lewis and Richard L. Clark filed a lawsuit against Chip Gaines in Waco, Texas. They claim that they were duped into selling out for an insanely low price and that Gaines failed to disclose his new TV contract. If that is the case, it's certainly easy enough to prove by comparing the date of the buyout with the date that Chip Gaines went under contract with HGTV.
Chip and Joanna Gaines' attorney has said that the $1 million "Fixer Upper" lawsuit is without merit and that they intend to prove it and rid themselves of these accusations. On the other hand, Lewis and Clark's attorney is pretty certain that they will win. David Tekell claims there is plenty of evidence to prove Gaines' former business partners claims that they were unfairly left out of the reality TV business deal.
The backstory on Chip Gaines and his partnership with John L. Lewis and Richard L. Clark
Chip Gaines founded Magnolia Realty with Lewis and Clark in 2007. The real estate business was very small, operating out of Waco and employing just one real estate agent.
When Chip Gaines bought out his former Magnolia real estate business partners, he claimed that the business was "nearly worthless" and offered up $2,500 for their shares in the company.
Not knowing what would soon unfold, they agreed.
Now, Lewis and Clark claim that Magnolia Realty has grown exponentially with the exposure received from the HGTV hit "Fixer Upper." Just two days after the sale was official, Chip Gaines announced the "Fixer Upper" show.
Chip Gaines' real estate company has definitely done well after the sale and the HGTV show. There are offices located all over Texas now and more than 90 real estate agents.
Two days after the $1 million "Fixer Upper" lawsuit was filed, Chip Gaines took to Twitter to have his say. He claims that his former business partners never reached out to him to discuss their issues with him. Instead, they jumped straight to a lawsuit four years after the deal went down and the reality series started.
Fyi: Ive had the same cell # 15 yrs.. same email for 20 yrs. No one called or emailed? 4 years later "friends" reach out via lawsuit.. humm
— Chip Gaines (@chippergaines) April 29, 2017
Do you think Chip Gaines owes his former business partners for cheating them out of the "Fixer Upper" fame and fortune? Sound off in the comments section below.
