In Re Ludwig Realty Corp.

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 Ken. The purported holders of an equitable lien now seek recovery of these legal costs.

PARTI: THE FACTS

In 1988, the Ludwig Equity Corporation (“LEC”) 1 contracted to purchase the Marina Apartment complex,…