The Court Hierarchy

Understanding the court hierarchy is essential for applying the doctrine of precedent. In England and Wales, the hierarchy from lowest to highest is:

• Magistrates’ Court / County Court (lowest)
• Crown Court / High Court
• Court of Appeal
• UK Supreme Court (highest domestic court)

The Court of Justice of the European Union is no longer part of the domestic hierarchy following Brexit, though CJEU decisions made before 31 December 2020 are “retained EU case law” and have a special status under the Retained EU Law Act framework.

The Doctrine of Precedent (Stare Decisis)

The doctrine of precedent requires courts to follow the legal reasoning (ratio decidendi) of decisions made by courts of equal or superior jurisdiction. The key rules are:

• The Supreme Court is bound by its own previous decisions, though it can depart from them where it appears right to do so (Practice Statement 1966).
• The Court of Appeal is generally bound by its own previous decisions, subject to narrow exceptions in Young v Bristol Aeroplane Co [1944]: where there are conflicting Court of Appeal decisions; where a previous Court of Appeal decision was made per incuriam (in ignorance of a binding authority); or where the decision is inconsistent with a later House of Lords/Supreme Court decision.
• The High Court is bound by the Court of Appeal and Supreme Court, but not strictly by its own decisions (though it will usually follow them for consistency).

Ratio Decidendi and Obiter Dicta

Only the ratio decidendi — the legal reason for the decision — is binding on lower courts. Obiter dicta (statements made by the way, not essential to the decision) are persuasive but not binding. Identifying the ratio in a complex case can be difficult — it requires extracting the principle of law that was necessary to decide the case on its specific facts.

The classic SQE1 question in this area presents a scenario and asks whether a lower court must follow a particular earlier decision, or whether there is scope to distinguish or depart from it. The answer depends on the court hierarchy, the closeness of the facts, and whether the decision in question is ratio or obiter.

Statutory Interpretation

Where legislation is ambiguous, courts must interpret it. The main approaches are:

• Literal rule: Apply the ordinary natural meaning of the words, even if the result appears unreasonable.
• Golden rule: Apply the literal meaning unless it would produce an absurd result, in which case a modified meaning may be adopted.
• Mischief rule (and purposive approach): Identify the mischief (gap or problem) the statute was designed to remedy and interpret the words to best remedy it. The purposive approach, now dominant in UK courts, asks what Parliament intended to achieve.

Section 3 of the Human Rights Act 1998 adds a further interpretive obligation: legislation must be read and given effect in a way that is compatible with Convention rights “so far as possible.”

Sources of Law

The principal sources of English law are legislation (primary and delegated), common law (judge-made law through precedent), and equity. European law, though no longer directly applicable, continues to influence domestic law through retained EU law.

• Primary legislation: Acts of Parliament. The supreme source — courts cannot strike down primary legislation.
• Delegated legislation: Statutory instruments, by-laws, Orders in Council. Subject to judicial review for ultra vires.
• Common law: Judge-made law through the doctrine of precedent. Fills gaps not addressed by legislation.

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