In New Zealand, the law derives broadly from two distinct sources, namely the judicial precedent of the common law which built up over years by operation and the statute law which the Parliament makes in the form of statutes (Mulholland, 2001).
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“The doctrine of precedent is a body of rules which provides guidelines as to when a particular court will be obliged to follow the decision of an earlier court, and when it is at liberty to ignore or overrule it” (Sanders, K., Scott, P., &Webb, D., 2010). The body of precedent is call “common law” which binds future decisions (Wikipedia Foundation, 2011). The common law evolved in England over centuries. As a colony of England, New Zealand inherited the common law system naturally. The English Law Acts of 1854, 1858 and 1908 confirmed the common law system in New Zealand legal system (Crichton, n.d.). In the doctrine of precedent, legal principles are developed through cases and judgment. According to Sanders, Scott &Webb (2010), a court is obliged to follow a decision of a court which is above it in the same hierarchy. The doctrine of precedent only applies when the ratio of the earlier case is acceptable to the case before the court. If the earlier case can be distinguished, or the statements in it are only obiter, it won’t be followed in any event. The earlier decision is considered the guidelines for later conduct. Actually, the doctrine of precedent provides the context that gives the concept of ratio its practical workability. It is based on the premise of consistency between cases which ensure the certainty and stability in the law. In this way, the law can be relied upon. It also confirms the confidence in the judicial system and the legitimacy of the common law. Moreover, the doctrine of precedent has the practical benefit of reducing the workload of the judges (Sanders, K., Scott, P., &Webb, D., 2010).
The cardinal rule of precedent is that courts lower in the hierarchy are obliged to follow the decisions of those courts above them. This means the District Court are obliged to follow the decisions of the High Court, Court of Appeal and the Supreme Court. The High Court must follow the decisions of the Court of Appeal and the Supreme Court. The Court of Appeal must follow the decisions of the Supreme Court (Sanders, K., Scott, P., &Webb, D., 2010).
Reference
Crichton, F. (n.d.). The New Zealand Legal System. Retrieved from http://www.lawfoundation.org.nz/.
Greville, M. (Mar 15, 2000). Features- An Overview of New Zealand Law. Retrieved from http://www.llrx.com/features/nz.htm#The%20New%20Zealand%20Legal%20System.
Mulholland, R. D. (2001). Introduction to the New Zealand Legal System (10th ed.). Wellington, New Zealand: Butterworths.
Webb, D., Sanders, K., & Scott, P. (2010). The New Zealand Legal System: Structure and Processes (5th ed.). Wellington, New Zealand: LexisNexis.