Sophia Michaels
Chip Gaines Faces Allegations from Former Business Partners
While Chip Gaines’ partnership with Joanna seems ideal, his history with his former associates tells a different tale. In 2017, he was taken to court by John L. Lewis and Richard L. Clark, the co-founders of Magnolia Realty, who sought $1 million in damages, as reported by Us Weekly. They alleged that he misled them during a buyout, compensating them just $2,500 each two days prior to the debut of “Fixer Upper,” without disclosing his agreement with HGTV. They claimed, “[He] pressured us to sell our stake at a mere fraction of its real worth by concealing that ‘Magnolia’ was about to benefit from major advertising and branding.”
The pair also accused Chip of using intimidation tactics to facilitate the sale, including threatening communications. In one text message, Chip reportedly warned Lewis, stating, “You should advise Rick to tread carefully. I don’t come from his privileged background. People who challenge me usually regret it. If he’s not prepared for that, he ought to stay silent.” (Source: E! News)
Chip refuted the claims and took to X to address them. He tweeted, “For the record: I’ve used the same cell number for 15 years and the same email for 20. No attempts to contact me? Four years later, these ‘friends’ decide to reach out through a lawsuit… curious.” The legal case was dismissed in 2020.
