What’s a binding precedent?

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Binding precedent is existing law that must be followed in common law jurisdictions. Judges issue rulings that become law, and the body of legislation made by judges is called precedent. Only a few precedents are binding, depending on who made the rule. Higher court rulings are binding on lower courts. State and federal courts have their own judicial systems, and rulings are only binding within their respective levels. The US Supreme Court is the highest court and its rulings are binding for all other courts in the US.

Binding precedent refers to existing law that must be followed. Such a precedent exists within common law jurisdictions that recognize judicially constituted law. In general, it follows the doctrine of stare depositis, which means “to maintain what has been decided and not to alter what has been established”.
Some countries and jurisdictions follow a common law system. For example, England and most US states except Louisiana use this type of system. It is an alternative to a civil law system, used by other countries, including France.

In a common law system, when a judge issues a ruling on a case, that ruling becomes law. For example, if a judge presiding over a contract law case states that parties who sign the contract have an obligation to read before they sign, then it becomes law that all parties who sign a contract have an obligation to read it. Judge law, also called common law or case law, is the law and remains the law unless the state or federal legislature passes a different rule that changes the common law. Judges can also define the laws passed by the legislature and those definitions and interpretations also become law.

All the body of legislation made by the judges is referred to as precedent. Only a few precedents, however, are binding. Whether the precedent is considered binding or not depends on who made the rule.
There is a hierarchy of courts in the United States: appellate courts, for example, outrank local courts in most states. The supreme courts are the highest court of all except in New York where the Supreme Court is the lowest court. When a higher court issues a ruling, it is binding on all courts at that level and below. For example, if the Supreme Court issues a ruling, it is binding on the appellate courts.

Each state and the federal government also have their own judicial systems. A state court ruling is only a binding precedent for other courts at or below its level within the state. A federal court ruling is only a binding precedent for other courts at or below the federal level. If the US Supreme Court issues a ruling, it is the highest court of all and is considered a binding precedent for all other courts in the US.




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