Plaintiff H & R Block of Missouri claimed that Gelray Gainey acted in contravention of their agreement, when Gainey sold his tax preparation business to H&R Block.
H & R Block sued Gainey for breach of contract. Gainey did not answer the complaint, thus the case proceeded in default.

H & R Block stated it employed the defendant since July 2006 when it had purchased his tax preparation business. Gainey left the business, and opened a new tax preparation business, accoring to plaintiff's counsel. In opening his business he violated several employment agreements, by using H & R Block trade secrets, client lists and other confidential information. Plaintiff's counsel produced business records of the defendant's signed employment agreements.