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Chip Gaines Sued by Former Partners for Fraud: Report

Image: Chip Gaines Sued by Former Partners for Fraud: Report

In this March 29, 2016, photo, Joanna Gaines, left, and Chip Gaines pose for a portrait in New York to promote their home improvement show, "Fixer Upper," on HGTV. (Photo by Brian Ach/Invision/AP)

By    |   Friday, 28 Apr 2017 04:14 PM

Two former partners are reportedly suing Chip Gaines and his Magnolia Real Estate company for more than $1 million, claiming he didn't tell them about the HGTV "Fixer Upper" television deal before buying their shares of the company.

Lawyers John J. Lewis and Richard L. Clark were partners with Gaines when Magnolia Real Estate was created in 2007 and were involved in the company until 2013 when Gaines bought their shares for $2,500 each, according to KWTX.

The suit claims Gaines had worked out the HGTV deal to begin airing "Fixer Upper" before buying the shares and that he didn’t tell his partners about the deal. Scripps Networks Interactive and High Noon Entertainment, which produces "Fixer Upper," also are named in the suit, KWTV reported.

Gaines’ attorney Jordan Mayfield told People, “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.”

While the lawyers were partners, Magnolia operated in Waco with only a single real estate agent, the suit detailed, but now Magnolia Real Estate operates in almost every major city in Texas and employs “over 93 real estate agents,” according to the suit, People reported.

HGTV officials declined to comment on the matter. “We respect the privacy of our show hosts and will not comment on matters related to their personal lives or businesses,” they said, People reported.

News of the lawsuit follows a recent blog post by Joanna Gaines telling readers not to believe everything the read after rumors spread that she was leaving the show to sell facial cream.

Chip Gaines posted a scripture verse on Twitter after the news of the suit broke Wednesday.

Followers seemed to trust that Gaines was honest in his dealings with the former partners.

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Two former partners are reportedly suing Chip Gaines and his Magnolia Real Estate company for more than $1 million, claiming he didn't tell them about the HGTV "Fixer Upper" television deal before buying their shares of the company.
chip gaines, sued, fraud, partners
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2017-14-28
Friday, 28 Apr 2017 04:14 PM
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