On The False Statement Of Securities The Burden Of Proof In Civil Action

In the civil litigations for misrepresentation on securities market, it's often verydifficult for the investors to raise evidence. So, the allocation of burden of proofbecomes a key problem for protecting the legal rights of the investors. This thesis,adopting the comparative method, analyzed the basic theories of burden of proof ofboth the civil law system and the common law system, and concluded that both thetheory and the practices of the allocation of burden of proof of our country adoptedthe Theory of Legal Requirements Classification of the civil law system as theirprinciple. This thesis agrees with it, and thinks that we can use the principle ofpresumption and the method of reversing of the burden of proof to avoid harm tosubstantial fairness that may be caused by the above-mentioned theory. Then, forprotecting the investors, this thesis agrees that acts of misrepresentation on securitiesmarket are acts of special acts of tort. Therefore, according to the Theory of LegalRequirements Classification, the allocation of burden of proof of four required factsare relevant, namely, the illegality, the damages, the causality and the fault. Theplaintiff (investor) shall bear the burden of proof of the existence of the illegality andthe damages. As for the causality, we apply the method of reversing of the burden ofproof, i.e., once the plaintiff completes the proof of the prerequisite facts, thedefendant (person who took the acts of misrepresentation) shall bear the burden ofproof of the inexistence of the causality. There are some scholars argue that it's notproper for us to adopt the Fraud on The Market Theory currently, but this thesisdisagrees with them. As for the fault, we require the defendant to shoulder thenon-fault responsibility (there's no burden of proof) or the fault inferenceresponsibility (i.e., they should bear the burden of proof of the inexistence of fault)according to their different types. This thesis concluded that the framework of therules of allocation of burden of proof of the civil litigations for misrepresentation onsecurities market of our country is basically sound, but still it made some pieces ofadvices.