Document: 486 U.S. 622 108 S.Ct. 2063 100 L.Ed.2d 658 Billy J. "B.J." PINTER, et al., Petitionersv.Maurice DAHL, al. No. 86-805. Argued Dec. 9, 1987. Decided June 15, 1988. Syllabus Petitioner Pinter, an oil and gas producer registered securities dealer, sold unregistered consisting of fractional undivided interests in leases to respondent Dahl, a real estate broker investor who was experienced ventures. Dahl touted the venture other respondents—his friends, family, business associates—and assisted them completing subscription agreement forms prepared by but received no commission from Pinter when each invested on basis Dahl's involvement. When failed, respondents sued Federal District Court, seeking rescission under § 12(1) Securities Act 1933 (Act) for unlawful sale securities. After bench trial, court granted judgment respondents, apparently rejecting Pinter's common-law pari delicto defense suit. The Court Appeals affirmed, ruling that such not available because creates "strict liability offense" rather than based intentional conduct, distinguishing Bateman Eichler, Hill Richards, Inc. v. Berner, 472 299, 105 2622, 86 215, which held applies actions 10(b) Exchange 1934, ground contains element scienter. also "seller" within meaning therefore could be liable contribution respondents' claims against since, although conduct "substantial factor" causing purchases, there evidence he had sought or financial benefit himself anyone respondents. Held: 1. is private action. Pp. 632-641. (a) Eichler limited claims, cases involving willful negligent misconduct, implied, as opposed express, causes Rather, decision provides appropriate test allowance action any federal laws, including 633-635. (b) first prong satisfied context if plaintiff at least equally responsible issuer's illegal failure register manner satisfies Act's registration exemption provisions. A purchaser's knowledge are cannot, itself, constitute equal culpability, even where sophisticated buyer may necessarily need protection. relative responsibility assessment turns upon facts case. second plaintiff's role primarily promoter investor. determination depends host readily accessible factors, including, to, extent involvement compared third parties solicited, incidental nature his promotional activities, benefits those offering's planning stages. 635-639. (c) Court's findings inadequate determine whether subjected test, it actions. 639-641. 2. nonowner must solicit purchase, motivated part desire serve own owner, order qualify 12(1), "[a]ny person . offers sells security" violation requirement "shall purchasing security him." 641-655. Section 12(1)'s language history, well statutory purpose protecting investors, demonstrate owner passes title, interest security, value, extends successfully solicits purchase securities, so long owner. It strains 2(3) Act, defines "offer" purposes every "solicitation offer buy value," say gratuitously urges another, strongly enthusiastically, make solely buyer's "soliciting" requesting value exchange suggestion titleholder will obtain ultimate sale. Only soliciting can fairly said "purchased" him, aligned with 642-647. language, whereby nontransferor seller defined one whose participation buy-sell transaction substantial factor take place, standard assessing seller. Without affording guidelines determining defendant's sufficiently integral sale, would expand primary beyond persons pass title "solicit" gain merely participate sales transactions only remotely related relevant aspects transactions, accountants lawyers simply performing their professional services. Such do arguably fit definitions set out 2(3). Congress did intend gross departure language. 648-654. record insufficient 12(1). finding solicited purchases clearly erroneous. However, Appeals' apparent conclusion entirely gratuitous share attractive investment opportunity friends associates premature, since made focused urged further some Pinter. 654-655. 787 F.2d 985, vacated remanded. BLACKMUN, J., delivered opinion REHNQUIST, C.J., BRENNAN, WHITE, MARSHALL, O'CONNOR, SCALIA, JJ., joined. STEVENS, filed dissenting opinion, post, p. ----. KENNEDY, took consideration Braden W. Sparks, Dallas, Tex., petitioners. Richard G. Taranto, Washington, D.C., Security Com'n, amicus curiae supporting petitioners, special leave Court. John A. Spinuzzi, Denton, Justice BLACKMUN 1 questions presented this case brought (Securities Act), 48 Stat. 74, amended, 15 U.S.C. 77a seq., confer party 2 * controversy arises prior 1982 (fractional leases) petitioner Maurice associates.1 Texas Oklahoma, dealer Texas. California investor, who, time dealings veteran two unsuccessful In pursuit opportunities, employed field expert locate acquire leases. This introduced advanced $20,000 leases, understanding they name Black Gold Oil Company have right refusal drill certain wells leasehold properties. located toured properties, often without talk others "get feel properties." App. Pet. Cert. 32. Upon examining geology, drilling logs, production history assembled concluded, words "there way lose." Ibid. 3 investing approximately $310,000 told about venture. Except Grantham, none spoke met Because venture, decided invest $7,500.2 4 fellow investors subscription-agreement form Each letter-contract signed purchaser stated participating were being reliance Commission (SEC Commission) Rule 146, 17 CFR 230.146 (1982).3 fact, involved suit never Commission. Respondents' checks payable Company. connection purchases. 5 failed proved worthless, United States Northern Texas, 77l (1), securities.4 6 counterclaim, alleged means fraudulent misrepresentations concealment facts, induced sell deliver averred falsely assured provide qualified, sophisticated, knowledgeable all information necessary evaluation investment. allegedly agreed raise funds "operator" wells. 69-73.5 asserted, same factual allegations, barred equitable defenses estoppel delicto. Id., 66-67.6 7 after respondent-investors. 92. concluded entitled private-offering registration. a-37. Accordingly, ruled that, unregistered, pursuant Ibid.7 sustain counterclaim Dahl. mention asserted rejected them. 8 divided panel Fifth Circuit affirmed. 985 (1986). give recovery. 988.8 section "a strict misconduct. thereby distinguished our recent 215 (1985), we applicable 891, 78j(b), Noting "as 'culpable' sense producing cause transaction," nevertheless "[a]bsent showing 'offensive dictates natural justice,' " available. F.2d, 988, quoting Keystone Driller Co. General Excavator Co., 290 240, 245, 54 147, 78 L.Ed. 293 (1933). 9 next considered was, assumed, plaintiffs' Pinter.9 990, n. 8. Citing precedent, described "(1) parts (2) place." 990. While acknowledging plaintiffs declined hold Instead, went refine its include threshold acts "promoter" "motivated direct indirect someone has advised purchase." 991. reasoned rule imposing (without fault knowledge) family members another advise matters unreasonably interferes well-established patterns social discourse." found return advice, impose "mere gregariousness." 10 judge issue majority's analysis both points. First, assuming applied cases, dissent should doctrine "catalyst" entire knew unregistered. addition, maintained transformed him into Circuit's established test. 991-992. added expectation-of-financial-benefit refinement, activities rendered "[m]ore program receives requisite amount financing smaller risk investor." 992, 3.10 11 Appeals, 8-to-6 vote, denied rehearing en banc. 794 1016 judges dissented denial addition financial-benefit definition "seller," "has absolutely foundation either settled law underlying policies." 1017. They criticized majority misinterpreting limit application fraud 10(b). 12 importance issues administration certiorari. 481 1012, 107 1885, 95 493 (1987). II 13 delicto, literally "in fault," rooted notion recovery wrongful conduct. See U.S., 306, nn. 13, S.Ct., 2626, 13. Traditionally, situations bore "at substantially injury," id., 307, 2627, parties' culpability arose act. Story, Equity Jurisprudence 399-400 (14th ed. 1918). Contemporary courts expanded defense's more closely analogous encompassed "unclean hands" doctrine, participated sort wrongdoing" defendant. Perma Life Mufflers, International Parts Corp., 392 134, 138, 88 1981, 1984, 20 982 (1968). Life, however, broadened construction litigation arising regulatory statutes. Nevertheless, separate opinions, five Justices recognized narrow, traditional formulation antitrust laws. 145, 1987 (WHITE, concurring); 147-148, 1988-1989 (Fortas, concurring result); 148-149, 151, 1989, 1990 (MARSHALL, 154-155, 1992 (Harlan, joined Stewart, part). 14 addressed scope antifraud provisions 10b-5, alleging broker-dealer corporate insider defendants large quantities stock divulging false materially incomplete pretext accurate inside information. argued broader action, expressly provided Congress, distinction, concluding "the views expressed apply full force implied laws." 310, 2629. "only (1) result actions, bears violations seeks redress, preclusion significantly interfere effective enforcement laws protection public." 310-311, captures essential elements classic doctrine. 2627. prong, embodies doctrine's public policy implications carefully before allowed, see ibid., ensures broad judge-made does undermine congressional favoring suits important mode enforcing Cf. 139-140, 1984-1985. Applying claim it, tipster-tippee situations, factors precluded recognition defense. 317, 2632. We narrow vision applicability Eichler. Nothing suggests claims. Nor suggest willful. 16 allowed offenses support logic.11 traditionally been "transgresses prohibitions." Restatement Contracts 598, Comment (1932). Courts offenses. See, e.g., UFITEC, S.A. Carter, Cal.3d 238, 250, 142 Cal.Rptr. 279, 285-286, 571 P.2d 996-997 (1977) (violation Reserve margin requirements); Miller Roofing 55 Cal.App.2d 136, 130 740 (1942) (sale permit State Corporation Commission). One premises grounded "denying judicial relief admitted wrongdoer deterring illegality." 2626-2627. deter eliminated statute offense punishing Regardless degree scienter, circumstances goal served effectively circumstances, afforded. A.C. Frost & Coeur D'Alene Mines 312 38, 43-44, 61 414, 417, 85 500, (1941). certiorari resolve conflict authority "over proper litigation." 305, 2626. formulated standards generally litigation. articulated specific deciding damages [in laws] grounds culpability." rejection distinction between express especially light question certiorari, makes clear assumed remedies. Thus, conclude 18 Our task, then, whether, Act. All case, Commission, maintain available.12 agree, find circumscribe application. B 19 Under noted above, defendant cannot escape unless, illegality. active, voluntary participant activity subject Woolf S.D. Cohn 515 591, 604 (CA5 1975), remanded grounds, 426 944, 96 3161, 49 1181 (1976); 312, 2630. "Plaintiffs truly themselves violated cooperation defendant." 153, Unless degrees essentially indistinguishable greater, compensated. 1989 149, 312-314, 2630-2631. Refusal less blameworthy frustrate laws; discourage most organizing forbidden schemes; sacrifice general individual punishment. Can-Am Petroleum Beck, 331 371, 373 (CA10 1964). render illegal—the offering meet As Barring investor's violation, foreign hardly trace decisions y(3)27 12(1)." L. Loss, Regulation 1694 (2d 1961).13 Although court's vary depending particular frequently cooperated developing carrying scheme distribute Katz Amos Treat 411 1046, 1054 (CA2 1969); Lawler Gilliam, 569 1283, 1292-1293 (CA4 1978); Malamphy Real-Tex Enterprises, Inc., 527 978 1975). issuer register, might obtaining rescission. 21 offend policies. protect requiring publication material thought allow informed concerning offerings interstate commerce. SEC Ralston Purina 346 119, 124, 73 981, 984, 97 1494 (1953); 43, 2, 417 H.R.Rep. 85, 73d Cong., 1st Sess., 1-5 (1933).14 requirements heart imposes violating requirements. Liability particularly tool, many instances detecting seller's 1293, citing 605. 2628. 22 view, precluding objective too, takes position. specifically designed actively participates distribution efforts 373-374 (plaintiff's "relationship pure became adulterated she selling attributed "). Athas Day, 186 F.Supp. 385, 389 (Colo.1960) (barring extensively distribution). defeat nonexempted, 23 Whether trial courts. These plaintiff, compare supra, supra; 980; activities; stages (such arranged underwriting materials). mean these conclusive culpable activity, exhaustive list considered. free, exercise sound discretion, consider whatever inquiry. C 24 Given ascertain assert claim.15 adequate conformed exemption, offering.16 indicate, hand, initiating investment, loaned money associates' but, investor-respondents, expected endeavors, drafted documents. Furthermore, conducted. Those remand proceedings. III 25 What availability obviate petitioners.17 turn now issue. 26 deemed look Ernst Hochfelder, 425 185, 197, 1375, 1382, 47 668 (1976). That provides, pertinent part: "Any 77l. provision class liability18 securities.19 But nowhere delineates regarded seller, sparse legislative sheds courts, part, term uniformly. 27 At very least, contemplates buyer-seller relationship unlike contractual privity. passed value. 1016. course, conventional sense, title.20 28 common parlance, property transfers in, property. rely ordinary operative terms "sale" "sell" "every contract disposition "offer sell," sale," attempt dispose of, solicitation buy, value." 77b(3). definitions, range potentially title. inclusion phrase buy" brings engages solicitation, inherently confined actual 12. 1016; Douglas Bates, 1933, 43 Yale L.J. 171, 206-207 Indeed, clear, interpreting 17(a) 77q(a), passage important. Naftalin, 441 768, 773, 99 2077, 2081, 60 624 (1979). explained: "The ["offer" "sell"], intended define broadly, expansive enough encompass process, seller/agent transaction." Rubin States, 449 424, 430, 101 698, 701, 66 633 (1981) ("It transferee 'offer' 'sale' 29 Determining falls 2(3), half analysis. clause "from" whom liable, narrows potential sellers.21 Several commentators restricts security. E.g., Beck Cantor, Fitzgerald 621 1547, 1560-1561 (ND Ill.1985); Abrams, Scope 1933: "Participation" Pertinent Legislative Materials, Ford. Urban 877 (1987); Collins Signetics 605 110, 113 (CA3 1979) (absent "special relationship"—e.g., control—§ requires privity buyer). effect, authorities interpret "purchase" complementary offeror, incur offeror "sells" transferring L.J., 922-923. 30 read restrictively. confines taken place. prospective recourse touts 884. requirement, exclude category reading status purchase. For example, vendor's agent commonly said, buyer, among "purchased," though Cady Murphy, 990 (CA1) (finding acting seller), cert. denied, 311 705, 175, 58 (1940). 31 "purchase." soundest interpretation term, correlative "offer," latter entails active buy. supported "offers sells," used enacted imposed security." 84. included solicitation. 74. or" 1954 amendments original split accommodate changes 5. 68 683, 686. Since "purchases" obvious meanings, Congress' extended him. amendment preserve existing law, 1542, 83d 2d (1954), U.S.Code Cong. Admin.News 1954, 2973; S.Rep. 1036, (1954); Hence, reason think "purchased from" amended "solicitation" alone.22 32 brokers "quite clear," principals statute. Wall Wagner, 125 854, 858 (Neb.1954), aff'd sub nom. Whittaker Wall, 226 868, 873 (CA8 1955) (principal agents); Schillner H. Vaughan Clarke 134 875, 879 1943) (seller's broker); supra Boehm Granger, 181 Misc. 680, 42 N.Y.S.2d 246, 248 (Sup.1943), aff'd, 268 App.Div. 855, 50 845 (1944) (buyer's broker). Had restricted effectuated intent adding 33 An includes furthers Act—to promote fair disclosure effectuate civil terrorem, 173; Shulman, 227, invocation felt solicitors perhaps critical stage transaction. involve directed positioned control flow purchaser, and, participants disseminate investors. likely injured, is, persuaded overriding preventing injury, infer fall mantle 34 extend motivation buyer. assist uncommon strained describe giving "soliciting." not, meaningful If motivation, align action.23 35 extending gain. assumes, explication, actually us validate, additional defendant-sellers identified, version utilized refinement espoused case.24 approach, tort "whose Pharo Smith, 656, 667 1980).25 acknowledged 36 agree contemplated petitioners advocate. There expansion offers. 12's mere participants' collateral wished create liability, little trouble doing so. Touche Ross Redington, 442 560, 572, 2479, 2487, 82 (1979).26 37 deficiency substantial-factor divorces reference examination total scheme. adopted approach attempted 25, supra. substitute concept transaction, proximate causation sells" "purchase focuses plaintiff-purchaser. surrounding circumstances. undoubtedly embraces sellers, expose professionals, lawyers, performance services, "purchas[e] person.27 38 Further, incorporate doctrines emerges opposite. 177. By injecting concepts litigation, introduces uncertainty area demands certainty predictability. conceded, affords rises level significance sufficient trigger status, 667.28 None employing what measure qualifies logically limitations difficult develop. result, ad hoc basis, predictive transactions. Croy Campbell, 709, 714 1980); 667. unlikely ordained silentio imposition unpredictably defendants. 39 Not surprisingly, justify matter construction. sole justification advances protects serves "remedial purposes" also, Lennerth Mendenhall, 234 59, 65 Ohio "it considerations construing [the securities] Acts." Landreth Timber Landreth, 471 681, 695, 7, 2297, 2307, 692 (1985). And "broad remedial goals" enacting providing 200, 1384; Tcherepnin Knight, 332, 336, 548, 553, 564 (1967). itself construed 'not technically restrictively, flexibly [their] purposes.' Affiliated Ute Citizens 406 128, 92 1456, 1471, 741 (1972), quotingSEC Capital Gains Research Bureau, 375 180, 195, 84 275, 284, 237 (1963). conducted apart intent, thinks improve law." 578, 2490. ascertainment respect created rest section. Santa Fe Industries, Green, 430 462, 472, 1292, 1300, 51 480 (1977). goals 'more broadly reasonably permit.' Ross, 2490, Sloan, 436 103, 116, 98 1702, 1711, 56 148 (1978). assume meant said. 40 reaches 2(3); "would add gloss [§ ] quite different accepted meaning." 199, 1983. entertain arguments.29 Being 41 unable explicitly "Dahl (save Grantham) offer, receipt interests." a-34. kind know sales, conclusive. Typically, personal "anticipat[es] profits," 1288, brokerage commission, properly expects enjoys. associates. conclusion, premature. assess liability.30 IV vacated, proceedings consistent opinion. 44 ordered. 45 KENNEDY 46 dissenting. I discussion II-A II-B disagree case.1 Moreover, am join Part advisory, misleading, assumes purchasers (i.e., "sellers") coextensive contribution, directly sellers. (1). burden proving shared resulted i.e., But, notes, conceded "nothing indicates securities." Ante, 640, 15; Brief Petitioners 27. undisputed here, unlawful.2 conducted," ante, 395, concludes findings. seems me, though, attention pleaded follows: Plaintiff, M. engaged Plaintiffs, forth Defendant's Counterclaim. He [Plaintiffs' First Amended Complaint], delivery complains." 67. fact "evidence establish counterclaims," a-38, seem follow affirmative pleaded. 52 did, proposed conclusions somewhat theory "[a]s Plaintiffs lease recover Record 274. construes proposal liberally amending pleading, examine played To sure, arguing apply, asked "received collected proceeds investors] hand access statement." 395. convince applied, importantly, aided latter's (or to) permitting argue now, remand, time, gives chance litigate prevented litigating nothing committed error defense, entertained legal view prove trial.3 53 possible relates elected sue Initially, unclear how us. acknowledges "Pinter's pleadings state explicit Dahl," 630, contributory incorporation counterclaims, contribution." then easily resolvable, pointed 657, indicating (nor assertion here) erroneous counterclaims. event, saw discuss hypothetical lawsuit my issuance advisory Court.4 Even like this,5 merits governed accountable. contours knowing obtained "successfully solici[t] owner." 647. neither nor resolution putative claim. necessary, resolving this, account third-party (contribution) "recover paid thereon, income tender ." entered tracked reciting purchased ordered "have B.J. individually d/b/a Company, price purchased, plus prejudgment thereon rate 6% annum date payment May, Plaintiff "offered, delivered" "individually Company," a-32, Specifically, found: 57 receive discount otherwise, suit." remedy rescission6 complete returned interest. proceeds, me frustrated allowing price.7 independent affirmance stated: 59 "In disgorge unsound retain plaintiffs." 1986). affirming Appeals. d.b.a. Energy Throughout refer collectively "Pinter." Respondents Gary Clark, Robert Daniele, Charles Dowayne C. Bockman, Ray Dilbeck, Koon, Art Overgaard, Jack Yeager, Accra Tronics Seals Aaron Heller. brother, accountant, partner business, bank officer handling loans, construction-business insurance agent, owned longtime friend, 101-104. still interested ventures organized new through sources document recited: "WHEREAS predetermined group arrange and/or declare reselling therein. (These 146 thereunder)." 95. 4, infra. rescinded, 30, 1982, Release 33-6389, Fed.Reg. 11251 (1982), superseded D, CFR, provides: who—(1) [5] shall equity competent jurisdiction, longer owns 5, 77e, referred 12, states, number exemptions, enable avoid these, 4(2), 77d(2), "private-offering" relieves "transactions offering." (1953) (establishing criteria fits exemption). 1974, "objective standards" 4(2) adopting 146. Transactions Issuer Deemed Involve Any Public Offering, Rel. 33-5487 (effective 10, 1974), 15261 (1974), CCH Fed.Sec.L.Rep. ¶ 2710, 2902. Rule, 3, following conditions: "[T]he 1) advertising; 2) reasonable believe experience evaluate financially able bear risk; 3) contained statement. rule, believe, thirty-five issuer." Mary S. Krech Trust Lakes Apartments, 642 98, 1981). Bloomenthal, Corporate Law 4.05[2] (1981 ed.). advantage "safe harbor" issuing claim, regarding properties experience, entitling 10b-5 thereunder, 240.10b-5 (1987), 12(2) (2). pendent law. contend loss pleadings. Second Proposed Findings Fact Conclusions Defendants 85-86 (claiming contended estopped Having reached unnecessary 37-38. 10b-5. 988-989. holding challenged contention thus accountable amounts awarded plaintiffs. 987. raised below. move, albeit unsuccessfully, realign defendant, remaining actionable sales. 164-165, 189. Presumably, contribution. Unlike 77k(f), reach exists "put boat Pinter," making vulnerable indicated go further" "Pinter 995, compelled Henderson Hayden, Stone 461 1069 (1972). 987-988. note, Accord, 1016, 1017 (1986) (opinion present banc). Among issue, alone unavailable. rarely succeeded 1294 1975); Commentators suggested Ruder, Multiple Fraud Cases: Aiding Abetting, Conspiracy, Pari Delicto, Indemnification, Contribution, 120 U.Pa.L.Rev. 597, 662-663 (1971-1972); Note, Delicto Laws: 72 Cornell L.Rev. 345, 359-362 below concern place no-lose situation. proves profitable, comes ahead. goes bad, 995. statute, permits maneuvers. Civil 246-247 (1933) (Shulman); accord, Fundamentals 1003, 74 1988) (Loss). deterrent effect achieved, great extent, year 77m. keep reap profit perform during year, rescind not. Straley Universal Uranium Milling 289 370 (CA9 1961). appear play, sue, regardless Act: strong incentive comply concerned unsophisticated decision. Permitting unknowing innocent discerned beneath policies furthered generally: group, individuals, healthy economy constantly purged disclosure. North American Development 280 106, 121 (SDNY 1968) (purpose disclosure), 424 63 1970). generally, 178-179 1961) (aim 'to honest enterprise .; restore confidence bring productive channels industry development capital grown timid aid employment restoring buying consumer power' "), 47, vigorously dispute valid argues "preeminent redress." 29. maintains undertaken or, completed, According own. concedes aware duty register. contends fulfill points argues, conclusory fashion, co-respondents invested. Finally, asserts permitted step dissemination responsive pressure sanctions." 98. dictum, ventured standard, advance 989, 6. delineation today inquiry analysis, point ultimately bar investor-respondents' constrained address, adapted equitable) rescission, 888, restoration quo differs source material. particular, disposed damages—"the thereon." calculation results equivalent Randall Loftsgaarden, 478 647, 655-656, 106 3143, 3149, 525 (1986); 886; 244. 77o, "controlling person" controlled person. "purchasing him" governs 12(2), similar rescissionary misrepresentation. Most differently 665-668, 6-8 Schneider, Privity Requirement Perspective, Tenn.L.Rev. 235, 261, 144 145 (1983-1984). 878 ("Clearly word [sell] subdivision 12"). transferor immediate vendor, litigated 12(2). Decisions addressing here. present, position on, consequence seller; remote bringing 1023-1024; noteworthy 1940 excluded 3985, 76th 3d 1-2 (1940), introduced, Cong.Rec. 6026 reduced adopted. section's supports conclusion. 924. granting question, vendor. Keskal Modrakowski, 249 N.Y. 406, 408, 164 N.E. 333 (1928); Peterson McManus, 187 Iowa 522, 545-549, 172 N.W. 460, 468-470 (1919). incongruous forcing solicitor ownership predicated fraud, theory, essential. 1017, Gordon Burr, 506 1080, 1085 1974) ("[A]s privy contract, nonetheless victim quo"). wanted bind remedy. enabled demand deterrence purely compensatory damages. 659, 3151. goals, chose classified inconsistent use effects; indication several approaches emerged expanding titleholder. O'Hara, Erosion Expanded Meaning Seller, UCLA 921 (1983-1984); Rapp, Is Seller Seller?, Case W.Res.L.Rev. 445 (1977); Proximate Cause-Substantial Factor Approach Limited Duty Inquiry, Vand.L.Rev. 361 (1983); Comment, Attorneys Participant Ariz.S.L.J. 529. theories reflect courts' constitutes approach—the aiding abetting theory—is method secondary Mayer Field Systems 803 749, 756 1986); re Caesars Palace Litigation, 360 366 1973); 113-114 (leaving open available). deals exclusively Compare Ariz.S.L.J., 550-577 (endorsing 12(2)); U.Pa.L.Rev., 620-644 (same), 942-947 (disapproving 12); L.Rev., 979-1002 (arguing secondary, inappropriate 12(2)). reflects conviction "must lie somewhere holds too-liberal events leading up "borrow negligence" premise cause. transferred president, vice employee. rationale York Corp. Franchises, 448 693 (1971) (holding promoters nationwide franchising sellers), years later refined 'substantial factor' Lewis Walston 487 617, 1973) (affirming firm representative plaintiff). followed view. 1287-1288 (§ 12(1)); Adalman Baker, Watts 807 359, 363 1986) Davis Avco Financial Services, 739 1057, 1067 (CA6 1984) 12(2)), 470 1005, 1359, 381 (1985); Stokes Lokken, 644 779, 785 1981) generally); Foster Jesup Lamont 759 838, 843-844 (CA11 1985) generally). Ninth shaped Anderson Aurotek, 774 927, 930 (1985) (imposing 'participants' 'both transaction' Rogers, 790 1450, 1456 (explaining "necessary" prongs require showings: 'but for' 'de minimis' throughout unified regulation. Liabilities obligations elsewhere see, 77b(11) (defining "underwriter," participants), Roosevelt Acts. 1934 participants. 78i(e). 925-937. 77k, lends acquiring statement misstates omits fact. 11(a) enumerates various categories process section, reasons, reject Commission's "participate purchase" Amicus Curiae 22. relies 1046 1969), attorney solicitation" plaintiff-purchaser placed worked "to tackle purchaser] money" owed made. 1053. "party embrace another's efforts. Tenn.L.Rev., 273 (suggesting allows "rather broadly"). slight difference comport intent. context, significant consequences occurred. Prosser, Torts 42, pp. 244, (4th ed.1971). observe, Imposing tangentially poorer better involved, once peripherally, impossible liability. danger true sellers information, business. over conducting avoids attenuated far less, any, harshness assisting. Particularly produces unpredictable results, risks over-deterring lawful Of address unsettled particular. "[i]n provisions." 636. sale" perplexed, provision" course condition liability; exemptions fails qualify, unless offered hard understand illegality—the register—can I, infra, resolved deem "There evidence, 987 "infer[ence] register," 27, contradicted reentry judgment. Tex.Rev.Civ.Stat.Ann., Art. 581-33(A), (D) (Vernon Supp.1988), authorized a-37-a-38. affirmed squarely conclude, recognize stand outcome issues. choice affirm again, it. "express[es] Act." 9. "no code 'seller' position." found, stated, 77p, "[t]he rights remedies subchapter exist equity." satisfaction conditions Act—such 12(1)—is surely question. note reluctant imply statutes silent Radcliff 451 2061, 500 (no laws); Northwest Airlines, Transport Workers, 77, 1571, 67 750 employer union Equal Pay 1963 Title VII Rights 1964); Halcyon Lines Haenn Ship Ceiling Refitting 342 282, 285, 277, 280, 318 (1952) (Court refuses fashion maritime noncollision solution problem await action"); Yellow Cab 340 543, 71 399, 523 (1951) (Congress waived sovereign immunity Tort Claims States). Another putting item (here, securities). Olson Thompson, Minn. 152, 140 N.W.2d 321, 322 (1966) ("While sounding tort, restitution reassignment Thompson damages, restored ante"). basic principle jurisprudence lies proportionate debt obligation." Symons, Pomeroy's 1071-1072 (5th ed.1941); (Second) 886A(2) (1979) ("The favor tortfeasor discharged harm paying excess share. No required liability").

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