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In January 2007, David S. Coats and J.T. Crook won a significant case in the North Carolina Supreme Court. Bailey & Dixon represented the defendants in Magnolia Manufacturing of N.C., Inc. v. Erie Insurance Exchange et al (525A06; North Carolina Supreme Court), which involved a seven-figure claim for lost business income arising out of a contended roof collapse at a manufacturing facility. After securing summary judgment for the defendants in Orange County Suprior Court, the case went all the way through the Appellate Division. The Supreme Court ruled that summary judgment had been properly granted to the defendants, all claims against the defendants were dismissed with prejudice, and it was judicially declared that defendants had complied with all policy requisites and had properly denied the claims at issue.