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Timber pony wall with "flat" 2x studs at panel joints

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Inspector314159

Structural
Dec 19, 2020
6
I am reviewing an older home built in 1998 that has a pony wall (shear wall) built with flat studs at the edges of each panel. I assume this was done to help facilitate edge panel nailing. Was this ever an approved shear wall construction method? The other studs are oriented perpendicular to the wall, as per standard construction.
 
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A pony wall is a short wall, not necessarily a shear wall, but it could be. Approved by whom? If it is adequate to resist the applied load, it ought to be okay.

BA
 
It could be an attempt to strengthen the in-plane or out-of-plane resistance of the wall. I'm picturing this as like a cripple wall below the first floor, which I understand was a common point of failure in the California earthquakes. Just guessing here.
 
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