1. Interpreting Precendents
Fundamentals of Law and Government
Maciej Pichlak PhD
Department of Legal Theory and Philosophy of Law
University of Wroclaw

2. The concept of binding precedent
A sufficient ground for decision
Stare decisis principle (doctrine of precedent)
„The precise operation of stare decisis varies from one legal system to another. It is common for courts lower in a judicial hierarchy to be strictly bound by the decisions of higher courts, so that Federal Court judges in the United States are bound by decisions of the Federal Court of Appeals for their circuit, and the English Court of Appeal is bound by decisions of the House of Lords. The lower court is ‘strictly’ bound because it has no power to overrule the higher court's decision. Equally, most appeal courts are bound by their own earlier decisions, though they are generally entitled in certain circumstances to overrule those decisions. There is enormous variation in the circumstances that are necessary for a court to overrule one of its own decisions: at a minimum it must regard the earlier decision as wrongly decided, but generally more is required than this, e.g. that the decision is ‘clearly’ or ‘plainly’ wrong.[3]. Finally, courts are generally not bound by the decisions of lower courts: the House of Lords for example is not bound to follow decisions of the Court of Appeal and is free to overrule such decisions if it takes a different view of how the case should have been decided.”

3. Three basic situations
APPLYING
DISTINGUIHSING
OVERRULING

4. Donoghue v. Stevenson Grant v. The Australian Knitting Mills

5. Balfour v. Balfour Merrit v. Merrit
In Balfour, Mr Balfour was a civil engineer, and worked for the Government in Ceylon (now Sri Lanka). Mrs Balfour was living with him. In 1915, they both came back to England during Mr Balfour's leave. But Mrs Balfour had developed rheumatic arthritis. Her doctor advised her to stay in England, because Ceylon climate would be detrimental to her health. As Mr Balfour's boat was about to set sail, he promised her £30 a month until she came back to Ceylon. They drifted apart, and Mr Balfour wrote saying it was better that they remain apart. In March 1918, Mrs Balfour sued him to keep up with the monthly £30 payments.
In Merrit, Mr. Merritt and his wife jointly owned a house. Mr. Merritt left to live with another woman. They made an agreement (signed) that Mr. Merritt would pay Mrs. Merritt a £40 monthly sum, and eventually transfer the house to her, if Mrs. Merritt kept up the monthly mortgage payments. When the mortgage was paid Mr. Merritt refused to transfer the house.

6. Balfour v. Balfour Merrit v. Merrit