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Court Watch

By Charles G. Miller and Darryl A. Hart

Former Franchisee Held in Contempt; Attorneys Have Trouble With Fee Request

In H&R Block Tax Services, LLC v. Judy Strauss, Bus. Franchise Guide (CCH) '15,593 (USDC, N.D. New York, July 7, 2015), a former H&R Block franchisee was held in contempt of court for not complying with a restraining order issued by the court enforcing the post-termination non-competition covenants in her expired Franchise Agreement. The agreement required, among other things, that for one year after the agreement ended, the franchisee would not solicit her former clients, engage in a competing business within 45 miles of her former H&R Block office, or allow her former office to be used for tax preparation services. In February 2015, Block obtained an order from the court restraining Strauss from violating those provisions. In the instant action, Block sought to hold Strauss in contempt for violating that order.

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