It would be a lot easier is you would provide ddl and sample data in a consumable format. Also, you should try to avoid reserved words for object/column names (all three of your column names are reserved words).
Assuming that hours is always a positive value you can just sum the values like this.
create table #SomeTable
(
CaseNum char(3),
MyHours int,
MyType int
)
insert #SomeTable
select 'xxx', 3, 1 union all
select 'xxx', 3, 2 union all
select 'xxx', 4, 1 union all
select 'xxx', 1, 1
select SUM(Case when MyType = 2 then -1 * MyHours else MyHours end) as TotalHours
from #SomeTable
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