Chip Gaines Settles Lawsuit With Former Business Partners

PDQ Briefing / YouTube

Chip Gaines, the beloved star of Magnolia Network’s hit show “Fixer Upper,” has settled a long-standing legal battle with former Magnolia Real Estate partners.

The saga began in 2017 when John L. Lewis and Richard L. Clark filed a hefty $1 million lawsuit against Gaines, alleging that he conspired to remove them from the company. However, their claims were eventually dismissed in 2020.

In response to their lawsuit, Gaines fought back with a defamation countersuit, claiming that his former business partners had defamed him during the legal dispute. The defamation countersuit was set to go to trial recently, but it seems the two parties have found a resolution outside the courtroom.

Avoiding The Courtroom Drama

According to reports from KWTX, Chip Gaines has reached an out-of-court settlement with Lewis and Clark concerning the defamation claim. The details of the agreement have been kept under wraps, adding an air of mystery to the whole affair.

The original lawsuit filed by Lewis and Clark alleged that Gaines had purchased their stake in Magnolia Real Estate without disclosing that he had struck a deal with HGTV to air “Fixer Upper.” It was a surprising revelation, as Chip and Joanna Gaines had become household names, and their show was attracting a vast viewership.

Before the confidential settlement, both sides were preparing for a jury trial in Waco, Texas, where the Gaines’ Magnolia empire is based. However, it seems they managed to avoid the courtroom drama with this newfound agreement.

@chipgaines / Twitter

Back in 2017, when the lawsuit first made headlines, Chip Gaines took to Twitter to express his surprise and disappointment in his former partners’ actions. He claimed that they hadn’t attempted to reach out to him directly, opting instead to resort to legal action.

“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 wrote on Twitter.

Lewis and Clark had asserted that they had tried to handle the matter privately before resorting to the lawsuit. Still, Chip’s tweet seemed to indicate that the communication breakdown was significant.

The settlement puts an end to a contentious legal battle that spanned six years, allowing both parties to move forward. While the details of the agreement remain undisclosed, it’s clear that this chapter of Chip Gaines’ life has come to a close.

For fans of Chip and Joanna Gaines, this news brings relief that their favorite home renovation duo can now focus on their many exciting projects without the legal cloud hanging over them. As Chip continues to build his Magnolia empire, fans can rest assured that the future holds new opportunities and exciting ventures for the Gaines family.

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