Just like in baseball, the Yogi Berra adage “it ain’t over till it’s over” sometimes applies to settlement agreements. In H&R Block Tax Services v. Strauss,1 Senior District Judge Lawrence E. Kahn stepped up to the plate to determine whether an agreed to, but unsigned, settlement agreement was binding. The court ruled that it was not, and H&R Block struck out.
H&R Block licensed its service mark to Judy Strauss for her to use in her tax preparation business. When the relationship ended, surviving covenants not to compete prevented Strauss from servicing her prior clients and from setting up a new tax preparation business nearby. When Strauss violated the covenants not to compete, H&R Block obtained a temporary restraining order against Strauss and, later, a contempt order and damages when Strauss continued to provide tax services in defiance of the restraining order.
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