Celeb Gists & Gossip

It Took Six Years For Chip Gaines To Settle A Million Dollar Lawsuit With His Former Partners, Here’s Why

Highlights

  • Chip Gaines faced a lawsuit from his former business partners.
  • The lawsuit dragged on for six years.
  • Chip Gaines’ lawyer released a statement calling the claims meritless.

Thanks to the success of Fixer Upper, Chip and Joanna Gaines became two of HGTV’s biggest stars. Unfortunately for the reality stars, Fixer Upper ended amidst homeowner complaints and there have been accusations the show was fake.

Even as the Gaines dealt with their show ending, Chip Gaines had to deal with a lawsuit that dragged on for years. While it is fairly common for legal matters to take a long time to go through the system, the fact that Gaines fought in court for six years.

Why Was Chip Gaines Sued For A Fortune?

In 2014, Fixer Upper premiered on HGTV, and it didn’t take long for the show to become a hit. Thanks to the show’s often extremely loyal audience, Chip and Joanna Gaines were able to make a huge amount of money for themselves in many ways.

Via: TheThings

On top of their television salaries, the Gaines have become very successful entrepreneurs. One example of that is the fact that Joanna Gaines has published a slew of books. The couple also created their Hearth & Hand with Magnolia collection of home products which was sold at Target.

The Gaines can also monetize their impressive social media followings. As studies have shown, Chip Gaines can demand tens of thousands for a sponsored social media post and Joanna Gaines can get paid even more.

As it turns out, there might be a reason why the Gaines have found so many ways to cash in. After all, before he and his wife became HGTV stars, Chip Gaines had already formed a business with a pair of partners.

Related: Joanna Gaines’ Instagram Profitability Blows Husband Chip’s Out Of The Water: Here’s How Much Social Media Adds To Her Net Worth

Roughly two years after Fixer Upper became a hit, Chip Gaines’ former business partners came back to haunt him. In a lawsuit that was filed against Chip Gaines, his former business partners claimed that the TV star tricked them out of a fortune.

From all accounts, two men named John L. Lewis and Richard L. Clark formed Magnolia Real Estate Company with Chip Gaines. Eventually, Lewis and Clark sold their ownership stake in Magnolia Real Estate Company to Chip Gaines.

Once Lewis and Clark were out of the picture, Magnolia Real Estate Company became worth a lot of money. A big portion of the reason that is the case seems to be that Chip Gaines’ HGTV fame led to Magnolia Real Estate Company becoming a lot more successful.

Chip and Joanna Gaines inside a house that is being renovated
Via: Instagram @magnoliarealty

While everyone agreed those events transpired, Lewis and Clark claimed in a lawsuit that they sold under false pretenses. In their version of events, Chip Gaines convinced them to sell without telling them the whole picture.

According to what Lewis and Clark’s lawyer David Tekell told People, Chip Gaines made a huge deal before selling. After getting a television crew to film him on the job, Chip Gaines made a deal to make the show that would become Fixer Upper.

Tekell contended in 2017 that once Chip Gaines knew he might become famous, he wanted to solely profit from Magnolia Real Estate Company. To make that happen, Chip Gaines got Lewis and Clark to sell him their stake in the business without telling them about the TV deal according to their lawsuit.

Related: Chip And Joanna Gaines’ Scandals Pale In Comparison To The Candis And Andy Meredith Lawsuit On The Magnolia Network

”With that then new and undisclosed information, Chip went back to his partners in Magnolia and said, ‘I would like to get rid of this little company and buy you guys out.’ But didn’t tell them that Magnolia realty was about to be fairly famous and would be getting a lot of free advertisements.”

According to legal filings, Lewis and Clark had some inkling that Chip Gaines had been working with a film crew. However, Chip Gaines’ former partners claim they only later found out about the TV deal in an email from the Fixer Upper star.

Since Magnolia Real Estate Company became a major success, Lewis and Clark felt that Chip Gaines owed them a lot of money. In their lawsuit, Lewis and Clark sought $1 million from Chip Gaines.

Chip Gaines looking surprised as Joanna Gaines laughs
Via: Instar

In response to Lewis and Clark’s lawsuit, Chip Gaines’ lawyer Jordan Mayfield released a statement on behalf of the Fixer Upper star. “We are confident that these claims will be found to be meritless. And it is disappointing to see people try to take advantage of the hard work and success of Chip and Joanna Gaines.”

When Lewis and Clark filed their lawsuit, there was no way they anticipated how things would ultimately play out.

Why Was Chip Gaines Embroiled In Court For Six Years?

Anytime someone files a lawsuit, they have to wait for their time in court. Since those lines can be very long, many lawsuits take years before they conclude. When it comes to John L. Lewis and Richard L. Clark’s lawsuit against Chip Gaines, it took roughly three years.

Related: Is Jennifer Lopez Actually Friends With Chip And Joanna Gaines Or Was Their Relationship Purely A Business Transaction?

In 2020, Lewis and Clark suffered a massive legal defeat. As the Waco-Tribune Herald reported, “Judge Jim Meyer of Waco’s 170th State District Court granted a motion for summary judgment filed by Gaines,”

What that means is Lewis and Clark’s lawsuit against Chip Gaines was thrown out. In most cases, that would mark the end of Lewis and Clark’s legal battles with Chip Gaines. In this case, however, that turned out to be the middle point of the story.

Chip Gaines smiling
Via: Instagram @chipgaines

When Lewis and Clark first sued Chip Gaines, he filed a countersuit against them alleging defamation. The legal battle also could have been further dragged out as Lewis and Clark could have tried to appeal Judge Jim Meyer’s ruling against them.

However, in July 2023, everything came to a head six years after Lewis and Clark first filed their lawsuit. A week before Chip Gaines’ countersuit was set to go before a jury, the two parties informed the judge they’d reached an out-of-court settlement.

As is often the case, the details of the settlement haven’t been publicly revealed, so there is no way to know if money changed hands. What is clear, however, is the countersuit and any potential appeal won’t be moving forward.

Source: NewsFinale

Related posts

Lisa Brenner (Updated August 2023)

BBC Brk News

Get celeb-loved Alo Yoga styles on sale for Cyber Monday 2023

BBC Brk News

Michael Epp Net worth 2023, Height, Weight, Career, Wiki, Bio

BBC Brk News

Leave a Comment