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HENDERSON v. U.S. FIDELITY & GUAR. CO.

No. 490PA96.

488 S.E.2d 234 (1997)

James E. HENDERSON and wife, Glenda J. Henderson v. UNITED STATES FIDELITY & GUARANTY COMPANY, Glenda Linton and Great American Insurance Company.

Supreme Court of North Carolina.

July 24, 1997.

Attorney(s) appearing for the Case

James M. Kimzey, Brevard, and Katherine E. Jean, Raleigh, for plaintiffs-appellants.

Wilson & Iseman, L.L.P. by G. Gray Wilson and Elizabeth Horton, Winston-Salem, for defendant-appellee United States Fidelity & Guaranty Company.

Patterson, Dilthey, Clay & Bryson, L.L.P. by Ronald C. Dilthey, Raleigh, for defendant-appellee Great American Insurance Company.

PARKER, Justice.

THE UNDERLYING ACTION

The underlying action arose out of a real estate transaction in which James and Glenda Henderson ("plaintiffs") purchased from Clifton Hicks Builder, Inc. ("Hicks") a residence situated in a drainage area subject to severe flooding. The evidence at trial demonstrated that before signing the contract to purchase, plaintiffs asked Hicks' president whether there had been or...

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