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re: 'Fixer Upper's' Chip Gaines sued by former business partners for fraud
Posted on 4/28/17 at 9:48 am to TheCaterpillar
Posted on 4/28/17 at 9:48 am to TheCaterpillar
quote:
That show is great and pisses me off at the same time.
"My budget is $180,000"
"Oh well we have this half acre on a lake with a 4 bedroom, 3.5 bath for 150k, which leaves us $30k to completely renovate the entire thing"
Is Waco that fricking cheap?
I've likely seen every episode and I don't recall them picking the house with the low reno costs. Usually they pick the one that leaves them $100-$150k in reno.
And even though they only show 3-4 rooms, they redo the whole house.
Furniture and decor is a mix of the homeowner's and what the Gaines have in their warehouse. You can buy it from them if you want.
This post was edited on 4/28/17 at 9:51 am
0
Posted on 4/28/17 at 9:51 am to MSMHater
quote:
Welcome to Texas. And yes. Housing is dirt cheap.
Not in Round Rock \ Austin it aint
Posted on 4/28/17 at 9:52 am to lsusportsman2
quote:
sounds like those two guys are butt hurt they made a dumb business decision.
Yep.
Posted on 4/28/17 at 9:52 am to Mo Jeaux
No one MADE them sell.....
Posted on 4/28/17 at 9:52 am to Ex-Popcorn
quote:
No, they are mad that the Gaines family breached their fiduciary duty of loyalty to their partners. You don't get to negotiate big contracts on behalf of the company and then buy out your partners for pennies on the dollar without disclosing that the company is about to be worth a lot more.
Yeah, I'm going to go with you don't really know what you're talking about. 
Posted on 4/28/17 at 9:53 am to Ex-Popcorn
quote:
Did you make a "dumb" business decision or did your partner screw you?
You didn't do due diligence before accepting the offer
Posted on 4/28/17 at 9:54 am to TheCaterpillar
you guys do realize this is a TV show, don't you? it's not a documentary. the fact that the name they use on the show is the same as that on their drivers license doesn't mean any of it is real.
Now, this old house and new yankee workshop, those were real. norm would never mislead us.
Now, this old house and new yankee workshop, those were real. norm would never mislead us.
Posted on 4/28/17 at 9:54 am to Ex-Popcorn
quote:
What if you owned a beach condo with another guy as a partnership. Then, the other guy gets offered $1,000,000 for the condo when it's only worth $300K to you. Then, your "partner" offers to buy you out for $200K. You jump at the deal and then learn after the fact that he knew it was worth a lot more and screwed you to earn more of the profit? Did you make a "dumb" business decision or did your partner screw you?
Right. The devil is in the details. Was Chip the managing member? Did he do something specifically to the dupe the other members/partners when he bought them out? I would be interested to see what their operating/partnership agreement said.
Posted on 4/28/17 at 9:54 am to Ex-Popcorn
quote:Was the contract with hgtv (or, really the production company) on behalf of the company? Did he have a fiduciary duty not to make tv shows without his partners? What did their partnership agreement say about this?
You don't get to negotiate big contracts on behalf of the company
This post was edited on 4/28/17 at 9:57 am
Posted on 4/28/17 at 9:55 am to STLDawg
I'm not posting that here ..What's your email?
..What's your email?
Posted on 4/28/17 at 9:56 am to Mr. Hangover
quote:
My fiancé looks just like jo
Do as I did and provide a pic.
Posted on 4/28/17 at 9:57 am to SnoopALoop
FWIW I think what you did for John Ross is fantastic...
Posted on 4/28/17 at 9:59 am to PearlJam
The homeowner is allowed to purchase the stuff they stage the house with for the show. 95% of the stuff in there when they do the reveal is not the home owners, unless they specifically get something made for the house like a dining table or something.
Posted on 4/28/17 at 10:01 am to PearlJam
quote:
Was the contract with hgtv (or, really the production company) on behalf of the company? Did he have a fiduciary duty not to make tv shows without his partners? What did their partnership agreement say about this?
The HGTV contract was with Chip and Joanna Gaines. The realty firm was separate. He bought them out for $2500 each, started the HGTV show and when it became a hit, the Magnolia Realty firm became a big player.
Posted on 4/28/17 at 10:02 am to anc
quote:
The HGTV contract was with Chip and Joanna Gaines. The realty firm was separate. He bought them out for $2500 each, started the HGTV show and when it became a hit, the Magnolia Realty firm became a big player.
Which is why the lawsuit reeks of bullshite. That being said, they will get a nice little sum in settlement to make the lawsuit go away.
Posted on 4/28/17 at 10:03 am to Mo Jeaux
quote:
That being said, they will get a nice little sum in settlement to make the lawsuit go away.
That's all this is. negotiating a settlement.
Posted on 4/28/17 at 10:03 am to Mo Jeaux
They will probably get 50k each to go away. They can buy a lake house in Waco with that.
Posted on 4/28/17 at 10:03 am to anc
Thank you
People are acting like HGTV was just jonesing to use the Magnolia Realty company for their show
They wanted the Gaines for their show
Chip and Joanna could've started any other realty firm for their purpose
And like you said, it wasn't til the third season or so that people even realized what Magnolia Realty was
People are acting like HGTV was just jonesing to use the Magnolia Realty company for their show
They wanted the Gaines for their show
Chip and Joanna could've started any other realty firm for their purpose
And like you said, it wasn't til the third season or so that people even realized what Magnolia Realty was
Posted on 4/28/17 at 10:04 am to tigerpimpbot
quote:
Lewis and Clark were equal partners with Gaines in founding the Magnolia Real Estate Company in 2007. The suit says that for the first six years, the company largely operated in Waco with a single real estate agent. The suit claims Gaines worked out a deal with HGTV for the “Fixer Upper” program without telling his partners and that Gaines planned on featuring the Magnolia brand name. Gaines bought their shares of Magnolia Real estate for $2,500 each, the suit says.
"With this insider information in hand, Chip Gaines convinced plaintiffs to sell their membership interests in Magnolia Realty quickly to him before a public announcement that “Fixer Upper” was picked up by HGTV." The suit, which also names Magnolia Realty, Scripps Networks Interactive, Scripps networks LLC and High Noon Entertainment which produces the show, claims Gaines pressured Lewis and Clark to sell “before they discovered the company’s value was radically enhanced by ‘Fixer Upper.’”
When Clark balked at the terms of the buyout, the suit alleges Gaines sent a text advising Lewis to tell Clark “to be careful.”
“I don’t come from the nerdy prep school he’s from. And when people talk to me that way they get their asses kicked. And if he’s not ready to do that he better shut his mouth. I’m not the toughest guy there is, but I can assure you that would not end well for [R]ick,” the text read, according to the suit.
Since the show debuted, the suit says, Magnolia has grown from a single-agent firm to one that employs “over 93 real estate agents, and a support staff, and now operates in nearly every major city in Texas.” In addition to monetary damages, the suit seeks rescission of the sale of the company or fair value for Lewis’ and Clark’s interest, payment of salaries, bonuses in-kind benefits and distributions they would have received as partners
This post was edited on 4/28/17 at 10:05 am
Posted on 4/28/17 at 10:05 am to lsuhunt555
quote:
o they're mad they got bought out before something big happened?
I would be if he negotiated the deal on behalf and hid it
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