Because the Supreme Court had granted certiorari on our decision in
Huddleston v. Herman & MacLean,
Plaintiff claimed violations of § 10(b) of the Securities Exchange Act of 1934, 15 U.S.C.A. § 78j(b), and Rule 10b-5 thereunder, 17 C.F.R. § 240.10b-5 (1982). Correctly following our Huddleston decision, the trial court instructed the jury that the plaintiff had the burden of proving every essential element of her claim by clear and convincing evidence. The jury returned a verdict for the defendants. The plaintiff appealed on the ground that the instruction on burden of proof was wrong.
In reversing
Huddleston,
the Supreme Court held that persons seeking relief under § 10(b) need to prove their cause of action by a mere preponderance of the evidence.
Herman & MacLean v. Huddleston,
- U.S. -,
The instruction that plaintiff had to prove her claim by clear and convincing evidence therefore was in error. The judgment must be reversed unless it can be affirmatively established that there was no prejudice on viewing the entire record.
McCandless v. United States,
The defendants contend that Mandel is not entitled to a new trial because she cannot demonstrate the erroneous jury instruction was prejudicial due to her failure to provide this Court with a complete transcript of the trial testimony. As a general rule, the appellant is responsible for presenting a record that is sufficient to allow this Court to decide the issues presented by the appeal. Fed.R.App.P. 10(b).
See Murphy
v.
St. Paul Fire & Marine Insurance Co.,
If the appellee deems the partial transcript inadequate to determine the issues, he is required to designate to the
Because the trial court denied defendants’ motion for a directed verdict both at the conclusion of the plaintiff’s case and at the close of all the evidence, it obviously determined the plaintiff made out a sufficient case to go to the jury. Without the record, we cannot say that the decision was wrong. The jury having decided the case under the wrong burden of proof, the presumption of prejudice carries the case to reversal in the absence of the appellees’ being able to demonstrate that there was in fact no prejudice. A new trial is required.
REVERSED AND REMANDED FOR A NEW TRIAL.
