Teen mom Chelsea Houska lashed out in court when ex-business partner’s lawyer tore her up for “not wanting to pay $4million she owes”.

TEEN Mom alum Chelsea Houska was slammed in court when her ex-business partner’s lawyer ratted her out during a hearing for “just not wanting to pay the $4 million she owed.”

Chelsea, 31, and her husband Cole, 33, have been sued by consultancy Envy for $4 million for allegedly withholding money they made from social media promotions.

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Chelsea, Cole and the other defendants filed a counterclaim, alleging that Envy did in fact withhold $150,000 from them.

The US Sun can exclusively reveal that Chelsea’s attorney Peter T. Shapiro and Envy’s attorney Matthew James McDonald faced each other before Judge Jennifer L. Rochon in the New York District Court on Tuesday, April 11.

A US Sun reporter at the hearing claimed that McDonald had requested summary judgment, meaning the judge would rule the case without a trial and dismiss one of Chelsea and Cole’s experts if a trial ensued.

McDonald also argued that it was “crystal clear” that his client was entitled to any money he made from Viacom, the media company that owns MTV.

Envy’s attorney said in court: “[Chelsea and Cole] try to undermine treaties.

“Envy sent all this money. Envy spent time trying to get her to comply. There’s no reason not to pay Envy. They just didn’t want to pay because it’s a lot of money.”

McDonald continued at the hearing, “Chelsea and Cole have terminated contracts with Envy and spoken directly to brands. Her manager cut out Envy and split the money with the DeBoers. He wanted them to stop working with Envy and just work with them.”

THE LAWYER OF CHELSEA SPEAKS

Chelsea’s attorney Shapiro then addressed the judge as he began: “It wasn’t ‘We’re sick of dealing with Envy.’ A long time passed without Envy paying Chelsea and Cole.

“They said, ‘Please pay us.’ There was no answer, there was distraction and invention. Envy of the breach of contract caused the defendants to act as they did about the breach of contract.”

He went on to say that Chelsea and Cole should be paid in the case.

Regarding Viacom, he claimed Envy was not entitled to any money made from Teen Mom 2 because the contract was “no longer in force” due to Envy’s “breach”.

Shapiro continued, “Telling the brands to stop paying Envy was the only way to make sure they got paid. You have done a lot of work and should be paid.”

The judge ended the hearing by setting a deadline for countermotions for summary judgment on May 11, opposition briefs on June 12, and reply briefs on June 26.

FIGHT FOR MTV MONEY

As The US Sun previously reported from court documents, Envy is demanding 35 percent of Chelsea and Cole’s earnings from Viacom, the media company that owns MTV.

According to the court filings, “It is undisputed that Envy worked on both the original Viacom agreement and its amendments and enhancements during the term of the DeBoer agreements.

“If necessary, that fact would be established through emails revealing Envy’s involvement in the negotiation and revision of the relevant agreements and assisting Chelsea and Cole in complying with them.”

The court filings went on to say that they are entitled to “35 percent of the millions of dollars in revenue from the Viacom agreements,” as that percentage is the same amount they agreed to for the social media revenue.

‘NOT ELIGIBLE!’

Chelsea and Cole responded by asking the judge to dismiss Envy’s motion.

Their letter to the judge read: “While defendants do not dispute that the parties entered into various agreements, the parties dispute whether the agreement between plaintiff and Chelsea and Cole DeBoer extends to their work with Viacom.

“Because Chelsea had an existing agreement and relationship with Viacom prior to her engagement to Envy, Plaintiff is not entitled to any pre-determined earnings.

“The parties also dispute whether there was ever an agreement to share Viacom revenues with Envy, and whether Envy performed any significant Viacom-related work at all. The agreements of the parties do not entitle the plaintiff to a share of this revenue.”

Chelsea and her family appeared in episodes of Teen Mom 2 from 2011 to 2021 before starring on HGTV’s Down Home Fab.

ENVY FEELING

Envy initially filed a complaint in 2020, demanding $3 million.

They filed an amended complaint in 2022, adding Chelsea and Cole’s companies Down Home DeBoer, Aubree Says, Dakota Ln LLC and DeBoer Holding Company, increasing the amount to $4 million.

Envy claims Chelsea signed with the company in 2015 while Cole signed in 2016.

Based on the alleged contracts, they agreed to “enter into license agreements for the Property only through Envy, permit Envy to negotiate such agreements exclusively, collect any revenue arising therefrom, and pay Envy 35 percent of any fees or royalties derived from the Property.” for domestic transactions and 40 percent of any fees or royalties for foreign transactions.”

According to the court filing, “Chelsea and Cole breached their contracts by directing certain brands to directly pay Chelsea, Cole, one of the other common customers and/or any other person or entity in order to obtain payment of Envy royalties.” avoid.

“Chelsea and Cole have failed to pass on such instructions and payments to Envy and have failed to pay Envy royalties owed for such sums.”

The couple also reportedly “failed” to meet commitments to companies including Bombay Hair Wand, Carseat Canopy, Diff, Fab Fit Fun, Loving Tan, Profile Sanford, Sugar Bear Hair, Timeless Organics, and others.

The amended complaint further alleged that Envy learned that Chelsea and Cole had “failed to disclose the existence” of the other companies.

Neid claimed the company Dakota Ln LLC was “formed after the plaintiff threatened legal action.”

C&A, the Chelsea business that originally dealt with Envy, was reportedly “shut down, stripped of all assets and stripped of all existing contracts.”

Down Home DeBoer was formed in 2020 while Aubree Says and DeBoer Holding Company were formed in 2021.

The court documents claimed: “Chelsea and Cole are now negotiating their trademark and licensing agreements with mutual customers, which will be executed by and paid for by the covert entities.

“Chelsea and Cole have received and continue to receive revenue generated from mutual customers through covert entity ownership of the brands.

“Chelsea and Cole treated the C&A and covert entity funds as their own and used the funds for personal purposes, including withdrawing all of C&A’s assets for personal use without paying C&A any compensation.”

Chelsea, Cole and the “undercover units” are being sued for breach of contract and unjust enrichment.

C&A and the other companies are being sued for tortious interference with contractual and business relationships and unjust enrichment.

Envy claims that Chelsea and Cole “received a significant financial benefit from Envy’s services through the revenue they and their mutual customers have received as a result of Envy’s services” and “have made millions of dollars through Envy’s efforts.” and keep earning. ”

FIGHT BACK

Chelsea, Cole and the other defendants filed a countersuit in May 2020 alleging Envy actually withheld $150,000 from them.

Chelsea and Cole denied the allegations, claiming they “owe no payments to Envy” and that the company “wrongfully withheld payments to Chelsea”.

The reality stars claimed Envy “actually harmed the professional careers of defendants Chelsea and Cole by withholding them significant payments and acting in unprofessional ways, including but not limited to, arguing with and disrespectful behavior towards Chelsea and Cole, potentially.” and then – existing licensing contacts and other professional contacts of Chelsea and Cole.”

Defendants also alleged that Envy “deliberately omitted numerous transactions and/or income from bank statements to prevent Chelsea, Cole and TWGG from receiving funds that are rightfully due to them.”

Chelsea claimed they owe her $154,074.62 in deals.

Envy denied the allegations against her in her reply.

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