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IN RE LUDWIG REALTY CORP.

Bankruptcy Nos. 95-11862B, 95-11968B.

234 B.R. 281 (1999)

In re LUDWIG REALTY CORPORATION, Debtor. In re Charles Ludwig Debtor.

United States Bankruptcy Court, W.D. New York.

May 14, 1999.

Attorney(s) appearing for the Case

William J. Brown, Phillips, Lytle, Hitchcock, Blaine & Huber, Buffalo, N.Y., for Champion Ventures and One Fine Corporation.

Mark Wallach, Penny, Maier, Wallach & Crowe, Buffalo, N.Y., for Ludwig Realty Corporation.

Harold Bulan, Goldstein, Bulan & Chiari, Buffalo, N.Y., for Charles Ludwig.

CARL L. BUCKI, Bankruptcy Judge.

This case requires the application of Oklahoma law to a complicated, multi-party real estate transaction. The central issue is whether a negative covenant creates an equitable lien that is enforceable against real property. Under Oklahoma law, attorney's fees are due to the prevailing party in any action to enforce a lien or mortgage, including an equitable lien. The purported holders of an equitable lien now seek recovery of these...

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