The common law principle by which the reasons for the decisions of higher courts are binding on courts ranked lower in the same hierarchy in cases where material facts are similar
Judges in superior courts (usually those that have the power to decide cases on appeal - the Supreme Court (Trial Division and Court of Appeal and the High Court) are able to set precedents and make law
Juries do not give reasons for their decisions - judges make their decision and state the legal reasoning for their decision - this reasoning forms the precedent
1. When they resolve a dispute for which there is a statute but the words of the statute need to be interpreted (statutory interpretation)
2. When they resolve a dispute for which there is no existing applicable law (statute or common law)
3. When judges make such decisions, the reason for the decision (the ratio decidendi) establishes a new legal principle or rule to be followed (a precedent)
Statements that are not part of the reason for the decision (and are therefore not binding) but still a matter of considered opinion - 'a thing said by the way'
When a judge in a superior court disagrees with and changes a previous precedent set by a lower court in the same case on appeal, thereby creating a new precedent which overrides the earlier precedent
When a superior court decides not to follow a previously established precedent set by a lower court, in a different and earlier case, creating a new precedent
The process by which a lower court decided that the material facts of a case are sufficiently different to that of a case in which a precedent was established by a superior court so that they are not bound to follow it
Even if courts don't apply R-O-D-D, they may still need to refine the law and make it clearer as they apply a precedent to a new case, allowing the law to expand and develop over time
While the main role of the courts is to apply existing laws made by parliament to resolve disputes, the courts have an important role to play in law-making
As part of the doctrine of precedent, judges follow a process in which they follow the legal reasoning behind the decisions of higher courts when resolving disputes
The courts can make laws because the doctrine of precedent allows for some flexibility
Through the process of reversing, overruling, distinguishing and disapproving, precedents change and develop over time to allow the gradual expansion of common law
Statutory interpretation also allows the law to expand and develop over time