EXCLUSIVE: Decorator Suing Dr. Phil Files Bankruptcy, Stalls Civil Lawsuit

The designers are suing the McGraws for alleged breach of oral contract, fraud, false advertising and intentional infliction of emotional distress.

Among the claims, the designers allege that the McGraws’ agreed to promote their skin care line on Dr. Phil’s show – which they claim the couple failed to do - and that Robin McGraw often took public credit for the company’s design work.

They also claim the McGraws took on a “repeated scheme to avoid paying vendors” stating “the McGraws make false promises to induce vendors and/or employees into providing unique and extraordinary services, then falsely accuse those vendors or employees of a wrongdoing related to those services…” according to court documents.

Concerning the emotional distress claims, the documents also note that in 2008, Flattery was diagnosed with exhaustion and dehydration “due to working long hours over an extended period of time, under high stress.”

Dr. Phil and Robin have countersued the designers for $665,000 in punitive damages and attorneys' fees, claiming their former interior designers representation proved to have been “knowingly false when made” and that “all of $665,000 the design company claimed was still owed to them was converted by the decorators for their own personal use.”