In: Accounting
In a dispute between Z-Teck Inc. and Chucks Games Corporation Inc., the court applies the doctrine of stare decisis. What is this doctrine? What does this doctrine have to do with the American legal system?
Stare Decisis is a latin phrase which translates as "to stand by decided matters". As per the doctrine of stare decisis, the decisions taken by the higher court within the same jurisdiction acts as binding authority for the lower court in the same provincial jurisdiction. This means that lower court are binded by the decisions taken by higher court in same jurisdiction. Moreover, decisions taken by court of any other jurisdiction act as only a pursuasive authority. What the doctrine of precedent declares is that cases must be decided the same way when their material facts are the same. Obviously it does not require that all the facts should be the same but the nature should be the same. Court will not decide the same question one way between one set of litigants and the opposite way between another.
Precedent and stare decisis are legal principles that help build our American common law system. All the decisions in court of law are first subject to these two principles.