Theoretical Basis and Legal Analysis of Proportionate Joint Liability of Security False representation Disputes

Abstract

The way that securities service institutions assume tort liability in securities false representation disputes is limited to joint liability by law. Considering the discretion principle of punishment according quantity of securities service institutions, proportionate joint liability appears in judicial practice. The proportionate joint liability, different from the proportionate liability regulated by other countries in comparative field of vision, is still joint liability in nature, which in China is mainly specified in the field of environmental tort disputes. It is especially expressed as the bearing joint liability in the cause force overlap section of the respective tort of semi-superimposed majority of people. According to the principle of analogy, environmental tort disputes and securities false representation disputes share some similarities in certain circumstances, which conforms to the requirements of the analogy, and enables to apply environmental tort proportionate joint liability to securities false representation disputes in an analogy manner. However, it is still necessary to keep alert of the deficiencies of proportionate joint liability. For the tortfeasor needed to bear the final responsibility, to define the scope and proportion still requires to further improve the legislation and judicial technology.