In 2016, BuzzFeed published an investigation into Chip and Joanna Gaines' church, Antioch Community Church, and its pastor, Jimmy Seibert, following a video the couple filmed with him in which he referred to the Gaineses as his "good friends."
The Gaineses faced another lawsuit in 2017 when two of Chip's former business partners, John L. Lewis and Richard L. Clark, accused him of defrauding them and sued him for over $1 million, according to People.
Lewis, Clark, and Chip founded the Magnolia Realty together in 2007, the publication reported.
Lewis and Clark said that Chip pressured them into selling their shares of the company for just $2,500 each in May of 2013, without telling them the "insider information" that he and Joanna were filming "Fixer Upper" for HGTV, which would likely — and did — increase the value of the company, as USA Today reported.
"At a time when only the defendants knew that 'Fixer Upper' had been fast-tracked for a one-hour premiere on HGTV and was on the verge of radically changing their lives and business enterprises, Chip Gaines conspired to eliminate his business partners — notwithstanding their longstanding friendship — to ensure that he alone would profit from Magnolia Realty's association with 'Fixer Upper,'" the complaint stated, according to USA Today.
USA Today also reported that the complaint said Chip called the business "less than worthless" when asking them to sell their shares and that he threatened Clark via a text message to Lewis when he expressed hesitation to let his shares go.
Chip seemingly responded to the lawsuit on Twitter in 2017, writing: "I've had the same cell # 15 yrs.. same email for 20 yrs. No one called or emailed?"
A judge dismissed the lawsuit in February 2020, according to the Waco Tribune-Herald, and sealed the records of the case, including Chip's deposition on the matter.
"From the very beginning, we have been proactive in our efforts to present the undisputed facts in this case," John Marsicano, a spokesperson for the Gaineses, told the Waco Tribune-Herald at the time. "We're thankful that truth has prevailed and that these claims were rightfully dismissed in their entirety."
2017: "Fixer Upper" homeowners said they felt "deceived" by Magnolia Realty after a car crashed into their home.
Homeowners Ken and Kelly Downs, who were featured on season three of "Fixer Upper," said they felt "deceived by the city of Waco and Magnolia Realty" after a suspected drunk driver crashed into their home on July 22, 2017, as the Waco Herald-Tribune reported.
Ken and Kelly were not injured by the vehicle, but the house was damaged, as the Waco assistant fire chief Don Yeager told the Waco Herald-Tribune.
"The yard is built up several feet, and he hit the embankment of the yard, apparently went airborne, and like a lot of older homes, this house was built up off the ground, so he cleared the rest of the yard," Yeager said. "He didn't hurt the hedges, but he took out the railing on the porch and went right into the window of the front room and hit an interior wall that might be a load-bearing wall."
Kelly told the Waco Herald-Tribune the experience added to their existing frustration with their home.
"We have been intimidated and harassed," she said. "People have complained about their taxes going up because we moved here. Store owners have complained about taxes."
Many residents credit the Gaineses and Magnolia with revitalizing Waco, but the newfound attention increased taxes and home prices, as Insider previously reported.
"There's a big problem here," Kelly said to the Waco Herald-Tribune. "It's not safe. This is a 'Fixer Upper' gone bad."
The couple also told the outlet they had reported suspicious activity and made complaints to the city, but they didn't get much of a response.
"It's like the Wild West here. There's been a lot of commotion coming from the bars and the store across the street," she went on to say. "It's been a problem from the beginning. We've lived here a year and a half and we feel deceived by the city of Waco and Magnolia Realty."