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Chip Gaines and Joanna Gaines, stars of the popular HGTV show Fixer Upper and owners of the Magnolia empire, were once sued by their neighbor for $1 million. Here’s why the Gainses’ neighbor filed a lawsuit against them and how the case ended.

Chip and Joanna Gaines smile and pose together at an event.
Chip and Joanna Gaines | Roy Rochlin/FilmMagic

Chip and Joanna Gaines’ neighbor at the Magnolia Market sued the ‘Fixer Upper’ stars for $1 million

In 2016, Country Living reported that Chip and Joanna Gaines’ neighbor at the Magnolia Market in Waco, Texas, filed a $1 million lawsuit against the Fixer Upper stars over the property surrounding the market.

There was an alley next to Magnolia Market that did not belong to the HGTV stars. The alley’s previous owner had a lease agreement with Chip and Joanna, allowing Magnolia Market customers to park on the property for free.

The agreement changed when the owner sold the land to Daron Farmer, who wanted to charge visitors to the market $10 to park on his property. After Farmer and the Gainses failed to reach a compromise over the alley, Chip installed a metal gate. Farmer claimed the gate partially restricted access to his land, illegally obstructing his private property. 

Chip and Joanna’s lawyer said the couple installed the gate to protect their business, so Magnolia Market customers didn’t think they were charging a parking fee. Farmer sued for between $200,000 and $1 million in damages and demanded that the gate be removed. 

The $1 million lawsuit against Chip and Joanna Gaines was dismissed

In 2017, the lawsuit against Chip and Joanna Gaines was dismissed after the Fixer Upper stars purchased the property next to Magnolia Market from neighbor Daron Farmer.

“I’m glad that Chip and I were able to resolve the case peacefully and remove it from the court system,” Farmer said (per KBTX). “Chip and I today are in good standing.”

Farmer did not reveal the purchase price, but sources said the Gaines paid just under $1 million for the property. The McLennan County Appraisal District valued the property at around $777,000 and listed Silos LLC as the owner.

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The ‘Fixer Upper’ couple’s Magnolia Market boosted the economy and tourism in Waco, Texas

Magnolia Market is just part of Chip and Joanna Gaines’ booming Magnolia empire, which also encompasses Magnolia Home, the Shops at Silos, and the Little Shop on Bosque. 

The Fixer Upper stars have contributed significantly to the economy and tourism in Waco, Texas. After Magnolia Market gained popularity from the HGTV show, fans flocked to Waco to see the shopping complex spreading across two downtown blocks of the city. 

After Magnolia Market opened in 2016, the city’s tourism increased by 165 percent in one year (per Chron). An estimated 2.5 million people visited Waco before the coronavirus (COVID-19) pandemic, and 1.7 million visited in 2021. Some visitors decided to stay and settle down in the town, like the Gaineses. Some visitors liked the town so much they decided to move there.

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