I have the following method I came across in a code review. Inside the loop Resharper is telling me that if (narrativefound == false) is incorrect becuase narrativeFound is always true. I don't think this is the case, because in order to set narrativeFound to true it has to pass the conditional string compare first, so how can it always be true? Am I missing something? Is this a bug in Resharper or in our code?

public Chassis GetChassisForElcomp(SPPA.Domain.ChassisData.Chassis asMaintained, SPPA.Domain.ChassisData.Chassis newChassis)
{
    Chassis c = asMaintained;
    List<Narrative> newNarrativeList = new List<Narrative>();

    foreach (Narrative newNarrative in newChassis.Narratives)
    {
         bool narrativefound = false; 

         foreach (Narrative orig in asMaintained.Narratives)
         {
                if (string.Compare(orig.PCode, newNarrative.PCode) ==0 )
                {
                          narrativefound = true;
                          if (newNarrative.NarrativeValue.Trim().Length != 0)
                          {
                             orig.NarrativeValue = newNarrative.NarrativeValue;
                             newNarrativeList.Add(orig);                            
                          }
                          break;
                }
                if (narrativefound == false)
                {
                     newNarrativeList.Add(newNarrative); 
                }
         }
    }

    c.SalesCodes = newChassis.SalesCodes;
    c.Narratives = newNarrativeList;
    return c; 
}