PJC Business

PJC 105.18

F RAUD AND N EGLIGENT M ISREPRESENTATION

PJC 105.18 Question and Instructions on Violation of Texas Securities Act—Aiding Violation If you answered “Yes” to Question ______ [ 105.12 ], then answer the follow ing question. Otherwise, do not answer the following question. QUESTION ______ Did Deborah Dennis materially aid Don Davis in committing the securities law violation that you found in Question ______ [ 105.12 ]? Deborah Dennis materially aided a securities law violation if she — 1. directly or indirectly, 2. with an intent to deceive or defraud or with a reckless disregard for the truth or the law, 3. materially assisted Don Davis in committing a securities law viola tion. Deborah Dennis acted with a “reckless disregard for the truth or the law” if she provided material assistance to Don Davis with a general awareness that her assistance would facilitate his untruthful or illegal activity. Answer “Yes” or “No.” Answer: _______________ COMMENT When to use. PJC 105.18 is based on Tex. Gov’t Code §4008.055(c) (formerly Tex. Rev. Civ. Stat. art. 581–33F(2)), which imposes liability on persons who aid or abet a seller, buyer, or issuer of a security who commits fraud as defined by the Securi ties Act. The trial court must condition the submission of PJC 105.18 on a finding of a securities violation by the primary seller, buyer, or issuer. Broad-form submission. PJC 105.18 is a broad-form question designed to be accompanied by one or more appropriate instructions. Tex. R. Civ. P. 277 requires that “the court shall, whenever feasible, submit the cause upon broad-form questions.” Tex. R. Civ. P. 277; see Thota v. Young , 366 S.W.3d 678, 689 (Tex. 2012) (rule 277’s use of “whenever feasible” mandates broad-form submission in any or every instance in which it is capable of being accomplished). For further discussion, see PJC 116.2 regarding broad-form issues and the Casteel doctrine.

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