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GERKE v. BURTON ENTERPRISES, INC.

87-1-0009 CV; CA A49052.

776 P.2d 879 (1989)

97 Or.App. 629

John F. GERKE and Ann R. Gerke, Husband and Wife, Appellants, v. BURTON ENTERPRISES, INC., an Oregon Corporation; Robert Burton and Dawn Burton, Husband and Wife; James V. Cottrell and Nancy M. Cottrell, Husband and Wife; Herschel A. Leatherbury and Marguerite Leatherbury, Husband and Wife; Kalberer Hotel Supply Co.; United States National Bank of Oregon, Redmond Branch; Alexander Albertine and Berndette Albertine, Husband and Wife; Wegroup, P.C., an Oregon Professional Corp.; C. Spencer Powell, John P. Totten, Dba Powell Totten & Co.; Luvaas, Cobb, Richards & Fraser, P.C.; and Ferder, Ogdahl, Brandt & Thompson, Attorneys at Law, Defendants, and Administrative Services Co., an Oregon Corporation, Respondent.

Court of Appeals of Oregon.

Decided July 26, 1989.

Reconsideration Denied September 15, 1989.

Attorney(s) appearing for the Case

Roy Kilpatrick, Mt. Vernon, argued the case for appellants. With him on the brief was Mike Kilpatrick, Mt. Vernon.

Robert D. Scholz, Portland, argued the cause for respondent. With him on the brief were William P. Buck and MacMillan & Scholz, P.C., Portland.

Before BUTTLER, P.J., and WARREN and ROSSMAN, JJ.

BUTTLER, Presiding Judge.

In this declaratory judgment action, plaintiff seeks reversal of the trial court's determination that plaintiff's judgment against defendants Burton for fraud is not binding on the Burtons' assignee, defendant Administrative Services Corp. (ASC). We affirm.

In August, 1981, plaintiffs purchased a motel in John Day from the Burtons for $1,100,000. The transaction was memorialized in a land sale contract and a covenant not to compete...

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