F4 Corporate & Business Law English Legal System

CIVIL LAW AND CRIMINAL LAW

Civil law sets out the rights and duties of Criminal law is concerned with conduct
persons as between themselves. The that is considered so undesirable that the
person whose rights have been infringed State punishes persons who transgress.
can claim a remedy from the wrongdoer. The aim, therefore, of the criminal law is
The aim, therefore, of the civil law is to to regulate society by the threat of
provide a means whereby an injured punishment.
party can obtain compensation.

The claimant The State

Sues Prosecutes

the defendant. the accused / defendant.

If the claimant can prove the wrong on If the State can prove the offence
the balance of probabilities (ie his beyond reasonable doubt (ie the
litigation is successful and the defendant prosecution is successful and the
is held liable) defendant is found guilty and
convicted)

the civil court will order the defendant to the criminal court will sentence the
pay damages or it might order some defendant to a fine or it might impose
other remedy such as specific some other punishment such as
performance or injunction. imprisonment.
The major criminal courts are:

1. The Magistrates Courts, where

magistrates conduct trials of minor
crimes.

2. The Crown Courts, where a judge

sitting with a jury conducts trials of
serious crimes

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UK Court Structure

Civil Courts

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County Courts
Jurisdiction: first instance civil claims in eg contract*, tort*, landlord & tenant and insolvency.

Composition: ● a single District judge sitting alone deals with small track claims.

● a single Circuit judge sitting alone hears fast track and multi-track claims.

Appeal: in the main lies to the Court of Appeal.

High Court of Justice

Jurisdiction: for jurisdictional purposes the

High Court has 3 divisions:

The Queens Bench Division: mainly first instance contract and tort multi-track claims.

The Chancery Division: its first instance civil jurisdiction includes probate, company law, partnership
law, and insolvency. The Chancery Divisional Court hears appeals from the County Courts on probate
and insolvency matters.

The Family Division: it has first instance civil jurisdiction in all matrimonial matters. The Family
Divisional Court hears appeals from the Magistrates Court on family matters.

Composition: at first instance a single High Court judge sits alone; but as a Divisional (appellate) Court two or
sometimes three High Court judges sit.

Appeal: appeal from the High Court's first instance jurisdiction lies to the Court of Appeal; although
exceptionally a leap-frog appeal may be made direct to the Supreme Court if the appeal is on a point
of law of importance on which there is already in existence a binding Court of Appeal precedent.
Appeals from the Divisional Courts lie to the Supreme Court.

The three-track system

The small claims track is for simple claims valued at no more than £10,000.

The fast track provides a streamlined procedure for moderately-valued claims (£10,000 to £25,000).

The multi-track provides a flexible procedure for high value (over £25,000) and/or complex claims.

Court of Appeal (Civil Division)

Jurisdiction: hears appeals from the County Courts and the High Court of Justice.
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Composition: three Lords Justice of Appeal sit to hear a case.

Appeal: lies to the Supreme Court.

Supreme Court
Jurisdiction: hears appeals from the Court of Appeal and the High Court of Justice.

Composition: usually five Law Lords (Lords of Appeal in Ordinary) sit to hear a case. [Prior to 1st October 2009 the
Supreme Court was called the House of Lords.]

Magistrates Courts
Jurisdiction: Although its jurisdiction is mainly criminal; sitting as a „family proceedings court‟ it has a small but
important civil first instance jurisdiction dealing with matters under the Children Act 1989 such as
council care orders. It also has jurisdiction to deal with recovery of council tax arrears.

Employment Appeal Tribunal

Jurisdiction: Hears appeals on a point of law from the local Employment Tribunals. The ETs deal with actions by
employee v employer (eg unfair dismissal).

Composition: one High Court judge plus 2 or 4 expert laymen.

Appeal: Court of Appeal.

TRIBUNALS
There are 2 types of tribunal.

1. Domestic. These are so-called because they are set up by a particular body to regulate the conduct of their
members.

2. Administrative. These are set up by an Act of Parliament as a means of settling certain specialised civil disputes as
an alternative to the court system. The most important are the Employment Tribunals.

Employment Tribunals
Jurisdiction: The ETs deal with actions by employee v employer (eg unfair dismissal).

Composition: 1 Employment Judge plus 2 expert laymen drawn from panels representing both sides of the
industry.

Appeal: Employment Appeal Tribunal.

SOURCES OF LAW
1. Case Law

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2. Legislation

Case law
This is law developed by the judges as they are deciding cases.

Common Law, in developing from local customs which became common to the whole country, is a complete system of
law.

Equity, in developing piecemeal to remedy injustices of the common law, is an incomplete system.

Legislation
This is law made by or on behalf of Parliament. There are 2 sub-types:

1. Act of Parliament
An Act of Parliament starts life as a Bill. Most Bills are introduced into Parliament by the Government of the day. The
Bill, in order to become an Act of Parliament, must go through the full Parliamentary procedure in both the House of
Commons and the House of Lords and then receive the Royal Assent.

Doctrine of sovereignty of Parliament Parliament is sovereign, ie it has supreme law-making authority. In theory
Parliament can make any law, and in any way, it sees fit. In theory it is only Parliament that can make new law.

2. Delegated Legislation
Made on behalf of Parliament like Ministers under powers delegated by Act of Parliament other examples could be
Bye-Laws made by local authorities.

DOCTRINE OF JUDICIAL PRECEDENT What is the doctrine

The system, adopted by the judges, of following previous precedents.

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Some precedents are binding whereas others are merely persuasive.

3 factors are relevant in determining whether a precedent is binding or persuasive:

1. Hierarchy: Lower courts are bound by the decisions taken by upper court but upper courts are not bound by the
decisions taken by lower courts.

2. Reason of decision:

Ratio decidendi: <Binding> The legal rule stated that was the reason for the decision

Obiter dicta: <Persuasive> Other legal rules stated but which were not the reasons for the decision

3. Material facts of the cases:

Same <Binding>

Similar <Persuasive>

STATUTORY INTERPRETATION
1. Literal Rule

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Words must be given their ordinary grammatical meaning

2. Golden Rule
Used where the literal rule gives more than one meaning of a word

3. Mischief (or Purposive) Rule

Used where the words are ambiguous or uncertain and the literal rule does not achieve the apparent purpose for
which the statute was intended.

4. Euisdem Generis Rule

General words mean the same kind of thing as the specific words they follow.

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