Case Law and Precedent: How Courts Make Law

Understanding Precedent Precedent is an ancient concept. It involves laying down general principles for the future. When judges in higher courts give reasons for the legal rules they apply, these reasons become authoritative statements of law that later judges must follow as precedents.[1] This rule applies equally to decisions about statute interpretation, making precedent perhaps more important than statute itself, since judges determine what statutes mean. Prerequisites for Precedent to Work Two things must exist for precedent to operate effectively: First, a well-established judicial hierarchy. Second, reliable reports of decided cases.[2] Law reports provide authoritative legal statements. The rule is simple: courts lower...