POSNER, Chief Judge.
A guard dog owned by defendant Kasten Railcar Services bit defendant Riley, resulting in a claim by Riley against Kasten that the latter asked its liability insurer, the plaintiff in this case, to cover. The insurer refused, pointing to the "canine exclusion" in the policy, and brought this suit (a diversity suit, governed by Illinois law) for a declaratory judgment of no coverage. The district judge thought the policy ambiguous, and submitted...
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