H & R BLOCK, INC. v. Lovelace

Owsley, J.,

dissenting: In my opinion, the construction of the contract in the majority opinion is erroneous. It appears clear to me that the restrictive covenant prohibiting competition is limited to an area within five miles of Yates Center, Kansas, and for a period of five years.

I dissent on the ground the restriction against competing with plaintiff for a period of five years is unreasonable. The purpose of the restriction is to prevent defendant from acquiring the customers served by H & R Block, Inc. This could be done effectively by preventing the defendant from competing with plaintiff in the preparation of income tax returns for a period of one year. A prohibition beyond one year would result in a hardship on defendant not justified by the advantage to plaintiff.

Exercising our equitable powers, I would modify this contract to limit the time of restraint to one year and then enforce the contract as written.