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ELECTRICAL AND MAGNETO SERVICE v. AMBAC INTERN.

No. 90-2798.

941 F.2d 660 (1991)

ELECTRICAL AND MAGNETO SERVICE CO. INC., A Missouri Corporation, Appellant, v. AMBAC INTERNATIONAL CORPORATION, A Delaware Corporation, Appellee.

United States Court of Appeals, Eighth Circuit.

Decided August 6, 1991.

Rehearing and Rehearing Denied September 17, 1991.

Attorney(s) appearing for the Case

Todd A. Johnson, Kansas City, Mo., for appellant.

Edward M. Dolson, Kansas City, Mo., argued for appellee; Edward M. Dolson and John M. Duggan, Kansas City, Mo., on the brief.

Before McMILLIAN, Circuit Judge, FLOYD R. GIBSON, Senior Circuit Judge, and BEAM, Circuit Judge.

Rehearing and Rehearing en banc Denied September 17, 1991.

FLOYD R. GIBSON, Senior Circuit Judge.

Electrical and Magneto Service Company, Incorporated ("EMS") appeals the district court's entry of summary judgment. We reverse.

I. BACKGROUND

In April 1984, United Technical Diesel Systems ("United") entered a franchise agreement with EMS. EMS distributed diesel equipment manufactured by United. The agreement contained a clause stating that...

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