GHOLAM REZA SAFAEIH v. REZA ALIZADEGAN - Articles

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GHOLAM REZA SAFAEIH v. REZA ALIZADEGAN

Posted by: Azya Thornton on Apr 10, 2026

Court: TN Court of Appeals

Attorneys 1: Gholam Reza Safaeih, Dyersburg, Tennessee, Pro Se.

Attorneys 2: Melinda Meador, Martin, Tennessee and Charles S. Kelly Sr., Dyersburg, Tennessee, for the appellee, Reza Alizadegan.

Judge(s): MCGEE

The parties entered into an agreement in which the defendant provided funds and the plaintiff used those funds to trade stocks. At one point, the defendant agreed to make a $50,000 loan to the plaintiff so that the trading could continue. The agreement was evidenced by a promissory note in which the plaintiff agreed to repay the loan and to share any losses incurred. The loan was secured by a deed of trust executed on the plaintiff’s residence. Subsequently, the parties lost approximately $210,342. The plaintiff then filed a declaratory judgment action in which he claimed that the deed of trust was void because the loan funds had never been disbursed. The defendant filed an answer and counterclaim alleging that the plaintiff owed him the balance of the loan plus interest. He also sought reimbursement for a portion of the losses that the parties had incurred. The chancery court determined that the defendant had never disbursed the loan funds. Accordingly, it held that the deed of trust and the portion of the promissory note which required repayment of the loan balance were void due to a lack of consideration. However, the chancery court also held that the portion of the promissory note in which the plaintiff agreed to share losses was effective and left the defendant entitled to damages. The plaintiff appeals. We affirm.

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