Franchise and Business Opportunities

The damages of $438,404.11 represent a share of Block's profits made from clients which they wrongfully diverted away from Liberty Tax in 2000 by using false advertising which inaccurately described their refund anticipation loans as speedy tax refunds, in violation of IRS regulations. Both the district court and the unanimous Fourth Circuit Court of Appeals had previously held that Block disseminated this false advertising, as the Fourth Circuit put it, with "a deliberate intent to mislead consumers and unfairly compete in the marketplace."

The additional $52,220.07 attorney fees award was for further attorney fees incurred by Liberty Tax Service in successfully defending two appeals filed by H&R Block in this case. Block had previously paid to Liberty Tax Service $325,035.18 in costs and attorney fees for successfully prosecuting their claims against H&R Block at trial. The attorney fees were awarded because the district court ruled that H&R Block's false advertising was done willfully and maliciously, targeting Liberty Tax Service.