JP Morgan Chase Bank, NA v. Winthrop Properties, LLC, 94 A.3d 622

Winthrop Properties, LLC defaulted on a $1,012,500 loan secured by a mortgage on 1533 Chapel Street, with guarantors personally guaranteeing repayment.
JP Morgan Chase Bank, N.A. (assignee) filed a two-count suit: foreclosure on the mortgage (count one) and enforcement of the guaranty (count two).
The court granted liability summary judgment against the borrower and guarantors, then entered a strict foreclosure, and later a deficiency-judgment-related damages hearing on count two.
The plaintiff sought damages from guarantors after the property title vested in the plaintiff following the law-day deadline, arguing § 49-1 barred further action.
Appellate Court held that § 49-1 barred damages against guarantors as to count two, and remanded for vacatur of damages; supreme court reversed, holding guarantors were not parties to the foreclosure, so § 49-1 did not bar recovery against them.
The supreme court ultimately held that the guarantors’ obligations under the guaranty are separate from the mortgage and note, so the plaintiff could pursue damages on count two despite the foreclosure.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Does § 49-1 bar recovery from guarantors after foreclosure?	Guarantors are parties to the foreclosure under § 49-1.	Guarantors are separate from the mortgage and not parties to foreclosure.	No; guarantors are not parties to the foreclosure, so § 49-1 does not bar against them.
Are guarantors bound by the foreclosure as to the guarantee claim when the mortgagee pursues damages in count two?	Guaranty liability follows the separate guarantee contract.	Guarantors are encompassed by the foreclosure bar.	Guarantors not barred; damages on count two survive.
Is a deficiency-judgment procedure § 49-14's exclusive remedy after foreclosure applicable to guarantors?	§ 49-14 could limit recovery but does not apply to separate guaranty claim.	Deficiency-judgment procedure governs all recovery following foreclosure.	Irrelevant to the guaranty claim; § 49-14 does not bar damages on count two.

First Bank v. Simpson, 199 Conn. 368 (Conn. 1986) (establishes deficiency judgments after foreclosure; bar to further action under § 49-1 applies to mortgage debt, not guaranties in separate actions)
Ansonia National Bank’s Appeal from Commissioners, 58 Conn. 257 (Conn. 1890) (foreclosure principles and redemption; interplay of rights to redeem)
New Milford Savings Bank v. Jajer, 244 Conn. 251 (Conn. 1998) (mortgagee remedies; distinction between foreclosure and note enforcement)
Hartford National Bank & Trust Co. v. Kotkin, 185 Conn. 579 (Conn. 1981) (title theory of mortgages; foreclosure remedies)
Carpenter v. Thompson, 66 Conn. 457 (Conn. 1895) (guarantees as separate and distinct contracts)