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
Peter J. Nickles – on behalf of the Petitioner
Ralph C. Ferrara – on behalf of the Respondent
Media for 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.