Teenager Mutter 2 star Chelsea Houska has been accused of “violating” a court order by hiding documents in her $3million lawsuit with her ex-business partner.
Chelsea, 30, and her husband Cole, 33, wurden sued by consulting company Envy for $3million for allegedly withholding money made from social media promotions.
Chelsea, Cole and the other defendants responded to the lawsuit by filing a counterclaim in May 2020, alleging Envy actually withheld over $150,000 from them.
The Sun can exclusively reveal Envy has accused the Teen Mom stars of “violating” the court order by continuing to withhold documents and revenue.
In court papers obtained by The Sun, Envy’s legal team wrote a letter to the judge requesting he order Chelsea and Cole to produce the remaining documents and to extend the discovery deadline to March 31, 2022.
Envy accused the reality stars of “violating” the court’s order by “failing to disclose the complete search terms used by the Defendants to identify responsive documents,” “failing to disclose relevant revenue” and more.
They also claimed the parties involved have been unable to begin depositions, which is testimony, because of this delay.
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CHELSEA FIRES BACK
Chelsea and Cole’s legal team fired back, as their lawyer claimed in a letter to the judge that the parties have been “working to complete the production of documents” and are “still working to address the ongoing discovery disputes.”
The lawyer claimed Envy too has “continued to withhold documents” for a specific period and “declined to search for them.”
The lawyer also claimed Envy has not produced PayPal records.
There is a conference scheduled to take place later today.
The issue of document production has been an ongoing battle between the ex-business partners, as the deadline has been extended many times before.
Im Oktober, the judge ordered Chelsea and Cole to provide the requested documents.
Court papers obtained by The Sun read: “Each Defendant shall produce financial records reflecting any revenue deriving from sources as to which Plaintiff is entitled to a share under the parties’ contracts. Defendants may reduce any revenue deriving from other sources.”
Envy too was ordered to “produce financial records reflecting any revenue deriving from its contracts with Defendants.”
Wie The Sun berichtet, Envy claimed in the lawsuit that the company entered into a contract with The William Gerard Group in 2015 to provide consulting services to Chelsea and Cole, who entered a contract in 2016, in exchange for a portion of revenue made from deals.
Envy worked as a “consultant to negotiate appearance, endorsement, licensing, royalty and television agreements and related contracts” from 2015 durch 2019.
The court papers claim Chelsea and Cole “failed to pay any of the contractually required fees.”
Chelsea and Cole were required to pay Envy 35 percent of all fees or royalties for domestic deals and 40 percent for foreign deals.
The court papers claimed Chelsea and Cole “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.”
The MTV stars also “both failed to perform, without any cause or reason, many of their responsibilities to the Brands.
“This included, but is not limited to, Bombay Hair Wand, Carseat Canopy, Daniel Wellington, Diff, Fab Fit Fun, Highway3, Kitsch, Kitsch Hats, Loving Tan, One Memory Lane, Perfekt Beauty, Profile Sanford, Sintillia, Sparkling Organics Sipp, Sugar Bear Hair, Teami Blends, and Timeless Organics.”
Allegedly failing to meet the contractual obligations caused them to “forfeit certain fees upon which Envy was entitled to receive.”
The court papers continued to claim Chelsea and Cole made “millions of dollars” due to Envy’s efforts.
The company is suing the defendants for $3million.
CHELSEA & COLE SUE
Chelsea, Cole and the other defendants hit back against the lawsuit by filing a counterclaim in May 2020, alleging Envy actually withheld $150,000 from them.
Chelsea and Cole denied the allegations and claimed they “do not owe any payments to Envy” and that the company “wrongfully withheld payments due to Chelsea.”
The reality stars claimed 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 toward Chelsea and Cole, potential and then-existing licensing contacts, and other professional contacts of Chelsea and Cole.”
The Defendants 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.”
Chelsea claimed they owe her $154,074.62 from deals with Loving Tan, Profile, Diff Eyewear and more.
They are asking for the lawsuit to be dismissed and to receive “monetary damages on their Counterclaims.”
Envy denied the claims against them in their response.
LIFE AFTER TEEN MOM
Chelsea left Teen Mom 2 im 2020 to “focus on the next chapter in life that will focus on developing our brand and taking things to the next level with new endeavors and expanding family businesses.”
The mom of four works with multiple retail brands, continues to promote Instagram products and runs home decor line Aubree Says, named after her oldest child Aubree, 12.