Union Bank, N.a., Resp. v. John T. Blanchard, Apps.

**Union Bank v. Blanchard: Court Upholds Bank's Right to Collect on Business Guarantees** This case involved a dispute between Union Bank and John T. Blanchard and other individuals who had signed personal guarantees for business loans. When the business defaulted on its loans, the bank tried to collect the money from these guarantors. The guarantors fought back, claiming they shouldn't have to pay and filed counterclaims against the bank. The court ruled in favor of Union Bank. It affirmed that the personal guarantees were valid and enforceable, meaning Blanchard and the others were legally required to pay the bank. The court also dismissed all of the guarantors' counterclaims and defenses against the bank. **What This Means for Workers:** This case highlights the serious financial risks of signing personal guarantees for business debts. When employees or business partners sign these documents, they become personally liable even if the business fails. Workers should understand that personal guarantees can put their personal assets at risk, including homes and savings. Before signing any guarantee, it's crucial to fully understand the potential consequences and consider seeking independent advice about these significant financial commitments.