In a filing lodged last month, John Bonomi—retired New York attorney and former owner of the Wellfleet property at 1440 Chequessett Neck Road—argues that the $3.85 million loan secured by JPMorgan Chase should be declared void because the bank knew he was mentally incapacitated when he signed the mortgage.
Bonomi purchased the 2010-built home for $5.5 million in November 2021, despite warnings that the bluff 14 feet from the house was receding at 2.5 to 3 feet annually; the erosion ultimately forced demolition in February 2025 to prevent a collapse into Cape Cod Bay.
The lawsuit lists three grounds: Bonomi’s inability to consent due to a manic episode, the mortgage’s unconscionability amid his impaired state, and the financial loss he suffered after the house’s demolition, for which he seeks roughly $695,000 in repayment and $750,000 in related expenses.
JPMorgan Chase, which has denied wrongdoing, maintains it acted in good faith and complied with commercial lending standards, citing its standard underwriting procedures and the absence of any formal medical review of Bonomi’s condition.
The case underscores the growing risk for lenders financing properties in zones prone to sea‑level rise and erosion, prompting calls from coastal‑zone regulators for stricter disclosures and risk assessments.
The court has scheduled a pre‑trial conference for January 15, 2026, after which a decision on the mortgage’s validity could set a precedent for future claims involving eroding coastlines.