Jadon F. Newman v. Firstmark Credit Union

**Newman v. Firstmark Credit Union: Contract Dispute Results in Nearly $3 Million Judgment** This case involved Jadon Newman and his dispute with Firstmark Credit Union over a financial guarantee he had signed. Newman had personally guaranteed a loan or debt, meaning he promised to pay if the primary borrower couldn't. When the debt went unpaid, the credit union sued Newman to collect on his guarantee. The trial court ruled completely in favor of Firstmark Credit Union without going to trial, finding that Newman clearly owed the money under his guarantee agreement. The court awarded the credit union nearly $3 million, including the original debt amount, interest, fees, and attorney's fees. When Newman appealed, the higher court agreed with the trial court's decision. **What this means for workers:** This case highlights the serious financial risks of personally guaranteeing business debts or loans. When you sign a personal guarantee, you become legally responsible for the full amount if the business cannot pay. Courts will enforce these agreements even if it results in significant personal financial consequences. Workers considering business ventures should carefully understand any guarantee agreements before signing and consider seeking professional advice about the potential risks involved.