WOLLMAN, Circuit Judge.
Karl's Inc. and Atchley Appliance & TV, Inc. (plaintiffs) appeal from the district court's summary judgment in favor of Digital Equipment Corporation (Digital). Digital appeals the district court's denial of its motion for leave to amend its answer to assert a counterclaim for attorneys' fees and Rule 11 sanctions under the Federal Rules of Civil Procedure. We affirm in part and reverse and remand in part.
I.
In July 1984...
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