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ENTRE COMPUTER CENTERS v. FMG OF KANSAS CITY, INC.

Nos. 86-3520(L), 86-3528.

819 F.2d 1279 (1987)

ENTRE COMPUTER CENTERS, INC., a Delaware Corporation, Appellant, v. FMG OF KANSAS CITY, INC., a Missouri Corporation and Porter B. Guttery, Defendants, and Gary J. Fox and David H. McMullen, Appellees. FMG OF KANSAS CITY, INC.; FMG of Omaha, Inc.; Gary J. Fox and David H. McMullen, Appellees, v. ENTRE COMPUTER CENTERS, INC., Appellant. ENTRE COMPUTER CENTERS, INC., a Delaware Corporation, Appellee, v. FMG OF KANSAS CITY, INC., a Missouri Corporation; Gary J. Fox and David H. McMullen, Appellants, and Porter B. Guttery, Defendant. FMG OF KANSAS CITY, INC.; FMG of Omaha, Inc.; Gary J. Fox and David H. McMullen, Appellants, v. ENTRE COMPUTER CENTERS, INC., Appellee.

United States Court of Appeals, Fourth Circuit.

Decided June 4, 1987.

Rehearing Denied August 11, 1987.

Attorney(s) appearing for the Case

James L. Quarles, III, Boston, Mass. (William G. McElWain, Hale and Dorr, Boston, Mass., Michael J. Walter, on brief), for appellant.

Edward A. McConwell, Overland Park, Kan., Clayton E. Dickey (Kenneth C. Bass, III, Great Falls, Va., Jeffrey J. Peck, Venable, Baetjer & Howard, Baltimore, Md., on brief), for appellees.

Before SPROUSE, Circuit Judge, HAYNSWORTH, Senior Circuit Judge, and MAXWELL, United States District Judge for the Northern District of West Virginia, sitting by designation.

SPROUSE, Circuit Judge:

The action from which this appeal arises involved the business failures of two retail computer store franchises. The franchisees — Gary Fox and David McMullen — obtained franchises from Entre Computer Systems, Inc., for Entre stores in Kansas City, Missouri, and Omaha, Nebraska,1 and operated them through their corporations, FMG of Kansas City and FMG of Omaha.2 After both...

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