In a derivation proceeding, what happens once the petitioner provides prima facie evidence supporting their claims?

In a derivation proceeding, once the petitioner provides prima facie evidence supporting their claims, the burden shifts to the respondent to disprove the claim. This means that the respondent must present sufficient evidence or arguments to counter the evidence provided by the petitioner.

The rationale behind this process is rooted in the procedural standards of evidentiary hearings: when one party presents sufficient evidence to establish a basic level of validity for their claims (prima facie), the opposing party must then respond or defend against those claims. This mechanism ensures that the proceeding remains balanced and allows the respondent the opportunity to clarify or contest the allegations made by the petitioner.

This shift in burden of proof is a common principle in many legal frameworks, as it helps streamline the process and ensures that both parties have a fair chance to present their case.