SKOPIL, Circuit Judge:
Appellants Amega and Princess Ermine appeal from a judgment in favor of appellee North American Watch Corporation ("North American") in an action for breach of supply and service agreements for watch merchandise. Appellants challenge the propriety of the district court's exercise of diversity of citizenship jurisdiction. They also contend that the district court improperly dismissed their counterclaims as a sanction for failure to comply with...
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