What is the standard of proof used in securities arbitration?
In Texas, the standard of proof used in securities arbitration is the preponderance of the evidence standard. This means that the party bringing the claim must show that their version of the facts is more likely than not true. When making a decision, the arbitrators will evaluate the evidence presented by both sides and decide whether the claimant has established their case by a preponderance of the evidence. To prove this, the party bringing the claim must present facts and evidence that make their version of the facts more probable than not. This could include testimony from witnesses, documents, and industry expertise. The preponderance of the evidence standard is the most commonly used standard of proof in civil cases in the United States. This standard is less demanding than the “beyond a reasonable doubt” standard used in criminal cases and the “clear and convincing” standard used in some civil cases. As a result, the preponderance of the evidence standard is much easier for the party bringing the claim to meet. The preponderance of the evidence standard is an important part of the securities arbitration process and allows claimants to have their cases heard even if there is not overwhelming evidence in their favor. This standard of proof ensures that the claims of investors can be heard and adjudicated fairly.
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