Chelsea Houska and Cole DeBoer who made their television debut on Teen Mom 2 have come a long way in their careers. The couple has recently announced their new business endeavor, a home improvement show on HGTV. However, inbetween their MTV days and the future HGTV ones is a $3 million lawsuit with a consulting services group.
The couple entered a contract with Envy in 2016 in exchange for a portion of the revenue they make off of social media promotions and business deals. The on going legal battle has put both parties up against the wall, now hoping to come to a mediation and end this all for good.
You're Probably Wondering How This Came About
In the lawsuit Envy claimed that they entered a contract with The William Gerard Group in 2015 in order to provide consulting services to Houska and DeBoer, who entered the contract in 2016, in exchange for a portion of the revenue made from deals, according to The Sun.
From 2015 through 2019, Envy worked as a "consultant to negotiate appearance, endorsement, licensing, royalty and television agreements and related contracts."
Houska and her husband were required to pay Encvy 35 percent of all fees or royalties for domestic deals and 40 percent for foreign deals. But, their was a breach in the contract.
The court papers claim that the couple "failed to pay any of the contractually required fees." The papers also revealed that they "breached their contracts by directing certain brands to directly pay Houska, DeBoer, one of the other Shared Clients, and/or other persons or entities to avoid paying Envy Licensing Fees." And it didn't stop there.
The court papers exposed the MTV stars for failing "to perform, without any cause or reason, many of their responsibilities to the Brands." And, not meeting these obligation caused them to "forfeit certain fees upon which Envy was entitled to receive." The papers claim that Houska and DeBoer made "millions of dollars" due to the efforts of Envy therefor, they are suing the couple for $3 million.
The Reality TV Star Clap Back
Houska and DeBoer made it clear that they weren't going down without a fight. In May 2020 they filed a counterclaim which stated that Envy withheld $150,000 from them. While denying all claims about owing money to Envy they also claimed that the company "wrongfully withheld payments due to Chelsea."
Their claim continued on to reveal that Envy has "actually harmed the professional careers of Defendants Chelsea and Cole by withholding considerable payments from them and acting in an unprofessional manner, including but not limited to, arguing with and acting disrespectfully towards Chelsea and Cole, potential and then-existing licensing contacts, and other professional contacts of Chelsea and Cole."
The reality TV couple also claimed Envy "intentionally omitted numerous deals and/or revenues from the Account Statements for the sole purpose of depriving Chelsea, Cole, and TWGG from receiving funds rightfully due and owing to them."
Envy allegedly owes Houska $154,074.62 from deals with Loving Tan, Profile, Diff Eyewear and more. However, Envy denied all claims.
Taking It To A Close
Both parties have been accused of withholding documents that share the honest financial records. The deadline has been extended multiple times but, it seems that now both parties are hopeful to settle it once and for all.
In light of their new HGTV show announcement the couple is hoping to put this lawsuit behind them. The most recent update comes from a copy of a letter from Houska and DoBoers legal team which states, "The parties remain optimistic that they will be able to resolve this dispute through mediation and will promptly report to the Court whether the mediation was successful."