>>Server collation and database collation and column collation is not the same thing. You can have SQL Server case insensitive (and you should have), but have case-sensitive database or certain columns to be case sensitive. Of course, this would be set in design time (or can be altered), so by default database inherits the same collation as model database.
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>The database is set up insensitive and the default is preserved for the related items.

Good, I was just explaining that it's possible to have different collations within the same database for different columns.