Steadman v. Securities and Exchange Commission

PETITIONER: Steadman
RESPONDENT: Securities and Exchange Commission
LOCATION: The United States District Court for the Southern District of Indiana

DOCKET NO.: 79-1266
DECIDED BY: Burger Court (1975-1981)
LOWER COURT: United States Court of Appeals for the Fifth Circuit

CITATION: 450 US 91 (1981)
ARGUED: Dec 03, 1980
DECIDED: Feb 25, 1981

ADVOCATES:
Peter J. Nickles - on behalf of the Petitioner
Ralph C. Ferrara - on behalf of the Respondent

Facts of the case

Question

Media for Steadman v. Securities and Exchange Commission

Audio Transcription for Oral Argument - December 03, 1980 in Steadman v. Securities and Exchange Commission

Audio Transcription for Opinion Announcement - February 25, 1981 in Steadman v. Securities and Exchange Commission

William J. Brennan, Jr.:

The other case is 79-1266, Steadman versus the Securities and Exchange Commission.

This petition brings up for a review of judgment of the Court of Appeals for the Fifth Circuit.

In administrative proceedings, the Securities and Exchange Commission applies a preponderance-of-the-evidence standard of proof in determining whether the antifraud provisions of the federal security laws have been violated.

Petitioner Steadman, a subject of a disciplinary proceeding initiated by the Commission has insisted that such violations must be proved by clear and convincing evidence rather than by a preponderance of the evidence.

The Court of Appeals on review of a Commission order disciplining the petitioner rejected his argument and held that in a disciplinary proceeding before the Commission, violations of the antifraud provisions of the securities laws may be established by a preponderance-of-the-evidence.

We agree and affirm the judgement of the Court of Appeals.

Justice Powell joined by Justice Stewart dissents and has filed a dissenting opinion.

Warren E. Burger:

Thank you Justice Brennan.