Bonomi Sues JPMorgan Chase Over $5.5 Million Cape Cod Mortgage Purchase

John G. Bonomi Jr., a retired New York attorney, is suing JPMorgan Chase for $3.85 million in damages related to his mortgage on a Cape Cod mansion that was deemed unstable and at risk of collapse.

Bonomi claims he made the purchase while experiencing an uncontrollable manic psychosis due to bipolar disorder, which led him to engage in irrational risk-taking and impulsive behavior.

The bank had initially sought to dismiss the case, but JPMorgan Chase responded with a denial of Bonomi's allegations, stating that it will leave his claims to be proven in court.

Experts say that while there is precedent for using mental health conditions as grounds for invalidating contracts in New York, Bonomi's claim may face a high bar due to the lack of similar cases and the complexity of determining when an individual's spending behavior is directly related to their condition.