Teen mom Chelsea Houska accused of ‘violating’ court order by hiding documents in $3m lawsuit with ex-business partner

TEEN Mom 2 star Chelsea Houska has been accused of ‘violating’ a court order by hiding documents in her $3million lawsuit with her ex-partner.

Chelsea, 30, and her husband Cole, 33, have been sued by consulting firm Envy for $3million for allegedly withholding money from social media promotions.

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Chelsea Houska was charged with violating a court order by hiding documentsCredit: MTV
Chelsea have been sued for $3 million for allegedly withholding money from social media promotions

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Chelsea have been sued for $3 million for allegedly withholding money from social media promotionsCredit: chelseahouska/Instagram

Chelsea, Cole and the other defendants responded to the lawsuit by filing a counterclaim in May 2020, alleging Envy actually withheld more than $150,000 from them.

The Sun can exclusively reveal that Envy accused the Teen Mom stars of “violating” the court order by continuing to withhold documents and income.

In court documents obtained by The Sun, Envy’s legal team wrote a letter to the judge asking him to order Chelsea and Cole to produce the remaining documents and extend the discovery deadline to March 31, 2022. .

Envy accused the reality TV stars of ‘violating’ the court order by ‘failing to disclose the full search terms used by defendants to identify relevant documents’, ‘failing to disclose relevant earnings’ and more.

They also claimed that the parties involved were unable to begin depositions, which is testimony, due to this delay.

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CHELSEA IS BACK

Chelsea and Cole’s legal team hit back, as their lawyer claimed in a letter to the judge that the parties had “worked to complete the production of documents” and “are still working to resolve outstanding discovery disputes”.

The attorney claimed that Envy also “continued to withhold documents” for a specified period and “refused to search for them.”

The attorney also claimed Envy failed to produce PayPal records.

A conference is scheduled for later in the day.

LEGAL WAR

The issue of document production has been an ongoing battle between former business partners, as the deadline has been extended several times before.

In October, the judge ordered Chelsea and Cole to provide the requested documents.

Court documents obtained by The Sun read: “Each defendant must produce financial records reflecting any income from sources in which the plaintiff is entitled to a share under the parties’ contracts. Defendants may reduce any income from other sources.

Envy was also ordered to “produce financial records reflecting any income arising from its contracts with defendants.”

$3M LAWSUIT

As The Sun reported, Envy claimed in the lawsuit that the company entered into a contract with The William Gerard Group in 2015 to provide consultancy services to Chelsea and Cole, who entered into a contract in 2016, in exchange for part of the revenue from the agreements. .

Envy worked as a “consultant to negotiate appearance, endorsement, licensing, royalty and television deals and related contracts” from 2015 to 2019.

Court documents claim that Chelsea and Cole ‘did not pay any of the contractually required fees’.

Chelsea and Cole were to pay Envy 35% of any fees or royalties for domestic transactions and 40% for foreign transactions.

Court documents claimed that Chelsea and Cole “breached their contracts by ordering certain brands to directly pay Houska, DeBoer, one of the other shared clients and/or other persons or entities to avoid paying the Envy licensing fee. “.

The MTV stars have also “both failed to fulfill, without cause or reason, many of their brand responsibilities.

“This includes 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 Sipp Organics, Sugar Bear Hair, Teami Blends and Timeless Organics.

The alleged breach of contractual obligations forced them to “waive certain fees on which Envy was entitled to receive.”

Court documents went on to claim that Chelsea and Cole earned “millions of dollars” from Envy’s efforts.

The company is suing the defendants for $3 million.

CHELSEA & COLE SUE

Chelsea, Cole and the other defendants retaliated at trial by filing a counterclaim in May 2020, alleging Envy actually withheld $150,000 from them.

Chelsea and Cole denied the allegations and claimed that they “owed no payments to Envy” and that the company “wrongly withheld payments due to Chelsea”.

The reality TV stars claimed that Envy had “actually harmed the professional careers of defendants Chelsea and Cole by withholding substantial 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 Chelsea and Cole business contacts.”

Defendants also claimed that Envy “intentionally omitted numerous transactions and/or income from account statements for the sole purpose of depriving Chelsea, Cole and TWGG of receiving funds rightfully owed to them.”

Chelsea claimed she owed him $154,074.62 through deals with Loving Tan, Profile, Diff Eyewear and more.

They are asking that the lawsuit be dismissed and that they be awarded “damages on their counterclaims”.

Envy denied the allegations against them in his response.

LIFE AFTER TEENAGE MOM

Chelsea left Teen Mom 2 in 2020 to “focus on the next chapter of life which will focus on building our brand and moving things forward with new endeavors and expanding family businesses.”

The mother-of-four works with several retail brands, continues to promote products on Instagram and runs home decor line Aubree Says, named after her eldest Aubree, 12.

Chelsea's husband Cole is also listed as accused and sued

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Chelsea’s husband Cole is also listed as accused and suedCredit: Instagram
They filed a counterclaim in May 2020, alleging Envy actually withheld $150,000 from them.

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They filed a counterclaim in May 2020, alleging Envy actually withheld $150,000 from them.Credit: Instagram
Chelsea and Cole are parents of four children

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Chelsea and Cole are parents of four children

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