The Pioneer Savings and Loan Co. v. City of Cleveland

McALLISTER, Senior Circuit Judge.

On February 4, 1964, appellant, The Pioneer Savings & Loan Co., an Ohio corporation, made a first mortgage loan to Maxine and Lester Zavelson for $27,000, covering a 4-story brick apartment building and the land upon which it was situated. This mortgage was recorded on February 11, 1964.

Sometime between September 8, 1965, and September 23, 1965, the City of Cleveland completely destroyed the building on the claim that it was a public nuisance. The City had previously given notice to the owner-mortgagors of alleged violation of housing ordinances, requiring…