Gerke v. Burton Enterprises, Inc.

In 1981, the Gerkes bought a hotel in John Day from the Burtons. They executed a land sale contract and a related covenant not to compete. They, their predecessors in interest and their creditors have been in litigation ever since. See Gerke v. Burton Enterprises, Inc., 80 Or App 714, 723 P2d 1061, rev den 302 Or 299 (1986) (Gerke I); Gerke v. Burton Enterprises, Inc., 97 Or App 629, 776 P2d 879, rev den 308 Or 465 (1989) (Gerke II).1

This case began in 1987 when the Gerkes sought a declaratory judgment to determine who among 12 potential creditors of the Burtons had priority as to payments…