Judicial precedent — SQE1 Legal system question
A worked single-best-answer question on judicial precedent, with why each wrong option is wrong — the way SQE1 traps candidates.
In 2015 the Court of Appeal (Civil Division) decided in Ashdown v Penrose that a particular type of contractual clause was always unenforceable. In 2023 the Supreme Court, in a case concerning a different clause, laid down a general test for enforceability which cannot stand with the reasoning in Ashdown, although it did not mention Ashdown. The Court of Appeal is now hearing an appeal in which the claimant relies on Ashdown.
Which of the following best describes whether the Court of Appeal is bound by Ashdown v Penrose?
- AIt is bound, because the Court of Appeal is always bound by its own previous decisions.
- BIt is not bound, because it must not follow its own earlier decision which, though not expressly overruled, cannot stand with a later decision of the Supreme Court.
- CIt is bound, because the Supreme Court did not expressly overrule Ashdown.
- DIt is not bound, because the Court of Appeal may depart from its own decisions whenever it appears right to do so.
- EIt is not bound, because decisions of the Court of Appeal lapse after five years unless confirmed by the Supreme Court.
Show answer and reasoning
Rule: The Court of Appeal must not follow its own decision that cannot stand with a later decision of the Supreme Court, even if not expressly overruled.
- A The Court of Appeal is bound by its own decisions subject to the Young v Bristol Aeroplane exceptions, one of which applies here. (wrong rule)
- C Express overruling is not required; inconsistency with a later Supreme Court decision is enough. (wrong rule)
- D The Court of Appeal has no general Practice Statement-style freedom to depart from its own decisions. (wrong rule)
- E There is no rule under which precedents lapse with time. (wrong rule)
Source: Young v Bristol Aeroplane Co Ltd [1944] KB 718
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