Summary Notes - Accounting Reports and Analysis
The Principle of ‘Stare Decisis’ Stare decisis – ‘let the decision stand’ –laying down the rule by which later cases will also be decided. The doctrine of precedent states: o Previous decisions of superior courts must be followed, unless the cases can be distinguished on their material facts and therefore treated as sufficiently different to justify applying different rules. The judging process, principle, and reasoning must be the same in applying case law when the nature of the case is similar. However, this does not necessarily mean the same outcome will occur. o Characteristics may vary as long as the facts of the case are not materially different.
The ‘Ratio Decidendi’ of a Case Ratio decidendi – consists of the legal principle, rule or reason which the court has applied to the materials facts of the case to arrive at its decision. Flexible and sometimes difficult to ascertain with complete precision. The judge sets out the principles that will be applied and goes through the reasoning process of applying those principles. Obiter dictum – ‘by the way’ – parts of the case where the judge is discussing case law but not applying it to the case; not binding on future cases and not part of ratio decidendi. When is ‘Ratio Decidendi’ Binding? Hierarchical relationship – courts are ranked in seniority, with a right of appeal from lower courts to superior courts. Lower courts are bound to follow the previous decisions of superior courts in the same hierarchy. The decisions of courts outside the hierarchy are not binding, but may be persuasive. Australian Court Hierarchy
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The ‘Ratio Decidendi’ of a Case Ratio decidendi – consists of the legal principle, rule or reason which the court has applied to the materials facts of the case to arrive at its decision. Flexible and sometimes difficult to ascertain with complete precision. The judge sets out the principles that will be applied and goes through the reasoning process of applying those principles. Obiter dictum – ‘by the way’ – parts of the case where the judge is discussing case law but not applying it to the case; not binding on future cases and not part of ratio decidendi. When is ‘Ratio Decidendi’ Binding? Hierarchical relationship – courts are ranked in seniority, with a right of appeal from lower courts to superior courts. Lower courts are bound to follow the previous decisions of superior courts in the same hierarchy. The decisions of courts outside the hierarchy are not binding, but may be persuasive. Australian Court Hierarchy
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