By Jen Heger - Radar Legal Editor
Television talk show personality Dr. Phil and his wife, Robin McGraw, have reached a settlement with their former interior decorator, RadarOnline.com is exclusively reporting.
The fracas began when Deborah Flattery filed a lawsuit against Dr. Phil and Robin for $7 million for breach of contract, fraud, false advertising and intentional infliction of emotional distress.
EXCLUSIVE DOCUMENTS: The McGraws Settle Lawsuit
The McGraws countersued for $665,000 in punitive damages and attorneys' fees, claiming their former interior designer’s 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.”
The settlement court docs state: "the above-entitled action has been settled and will be dismissed following the satisfactory completion of specified terms."
Terms of the settlement weren't disclosed in the court docs, and Robin McGraw's attorney filed the motion advising the court of the agreement.
As RadarOnline.com previously reported Flattery alleged that the McGraws agreed to promote her skin care line on Dr. Phil’s show – which she claims the couple failed to do - and that Robin McGraw often took public credit for her company’s design work.
She also claimed that 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.