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How can legal precedent affect my business?

On Behalf of | Apr 26, 2024 | Civil Appeals

Precedent is a legal term that describes how courts in Virginia and the federal courts treat the decisions of prior courts.

The idea is that courts should decide cases consistently over time. So, if a superior court made a decision at one point, the court would generally decide similar cases with similar facts the same way.

Some precedents are considered binding. To give an example of binding precedent, all other state courts, including the Court of Appeals of Virginia, must follow the decisions of the Supreme Court of Virginia.

In other words, if another court has a case like a case the Supreme Court of Virginia decided, they should handle it the same way the Supreme Court handled it. They should interpret and apply the law according to the Supreme Court of Virginia’s decision.

Virginia courts may accept or ignore the decisions of other courts such as courts from other states or the federal district courts.

However, judges often will refer to such decisions for guidance when making their own rulings.

The reason precedent matters for businesses and individuals in the Richmond area is that, in civil litigation, precedent may affect legal rights and potential outcomes. How courts have decided prior case often has the same legal force as a statute or regulation.

On a related note, precedent also can shape how businesses handle contracts and other transactions.

How might precedent play into my decision to appeal a ruling?

After an unfavorable ruling, one of the first considerations is whether to appeal the ruling in the first place. Precedent plays a huge role in this decision.

How other courts have handled a question will also factor into which arguments a business might raise on appeal and how to present those arguments. This is so whether a person is appealing or responding to an appeal.

Someone considering an appeal also should think about how the outcome will influence future precedents.

Precedent is one of the many important considerations Virginia residents should evaluate when thinking about their options to appeal.

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