Case Law (Common Law)

While constitutions and legislation are major sources of law, another essential source is case law, also known as common law or judge-made law. It refers to the legal principles developed by judges through their decisions in court cases.

In many countries — especially those following the common law system (such as the UK, USA, Australia, and others) — case law plays a powerful role in shaping legal rules over time.

What Is Case Law?

Case law is the body of legal rules created when judges:

• Interpret legislation

• Resolve disputes

• Fill gaps where no specific law exists

• Apply established legal principles to new situations

When courts make decisions in legal cases, they often set precedents — legal rules that must (or should) be followed in future cases involving similar facts or issues.

What Is a Precedent?

A precedent is a legal decision that serves as a rule or guide for future similar cases. This is part of a principle called stare decisis (Latin for “to stand by things decided”).

There are two main types of precedent:

1. Binding Precedent
   Must be followed by lower courts in the same legal system if the facts and legal issues are similar.

2. Persuasive Precedent
   May be considered by a court but is not required to be followed — for example, decisions from other countries or lower courts.

Example: If a higher court decides that a certain type of contract is invalid, lower courts must apply that rule to similar cases in the future.

 

How Case Law Works in Practice

When judges decide a case, they write a judgment, which may include:

• The facts of the case

• The legal issues involved

• The interpretation of relevant laws

• The reasoning behind the decision

• The decision or outcome

The legal reasoning becomes part of the case law and may influence or bind future courts.

Advantages of Case Law

• Flexibility – Judges can adapt legal principles to new or unexpected situations

• Fills gaps – Courts can resolve issues not directly covered by written laws

• Consistency – Similar cases are treated similarly, promoting fairness

• Development of law – Law evolves gradually through practical experience

Limitations of Case Law

• Complexity – Case law can be difficult to navigate, especially when many cases have interpreted a law in slightly different ways

• Uncertainty – Different judges may interpret laws differently

• Access – Understanding case law often requires legal training or help

Also, in many legal systems, legislation can override case law. If a court interprets a law in a way that parliament disagrees with, new legislation can be passed to change it.

Common Law vs. Civil Law Systems

• Common Law Systems (e.g., UK, USA, Australia): Case law is a major source of law; judges play a central role in shaping the law through precedent.

• Civil Law Systems (e.g., France, Germany, Indonesia): Rely more heavily on written codes and legislation; case law has less influence, but judicial interpretation still matters.

Understanding case law helps explain how law develops in practice and why judges have such a vital role in shaping the legal system.