To block a friend from exchanging messages with you, tap the friend in the Chats screen. Tap the Menu icon > People & options. Tap Block next to the contact's name, then tap BLOCK.
To remove a friend from the blocked list, tap the Hangouts Options icon . Tap Blocked people, then tap Unblock next to the friend.
You can also unblock a friend by tapping Archived. Tap the blocked friend in the archived conversations list, then tap UNBLOCK.