1. CHAPTER 2 LEGAL INSTITUTIONS
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

2. DISTRICT COURTS Supervised by a Judge (“Your Honour”)
Jurisdiction limited to cases within NSW
Can handle all civil matters between $60,000 - $750,000
More serious criminal matters (except murder, treason or piracy)
Hears appeals from local court decisions and various tribunals
Appeals can be made against NSW District Court decisions to either the NSW Supreme Court (Court of Appeal) or the NSW Supreme Court (Court of Criminal Appeal) depending on the type of case
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

3. LEGAL TERMS/PARTIES IN COURT CASES
Plaintiff: The person starting legal action
Defendant: The person being sued
Appellant: The person appealing
Respondent: Opposing party in the appeal
Burden of proof: Responsibility to prove case
Standard of proof: Amount of proof required
Civil: One party sues another. Plaintiff has burden of proof on balance of probabilities
Criminal: Crown prosecutes offender and standard of proof is beyond reasonable doubt
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

4. LEGAL TERMS/PARTIES CONT…
Contract: Agreement that creates legal rights and obligations that are enforced by the law
Torts: Civil wrongs that allow for the innocent party to claim damages or injunction
Civil law: The law under which a plaintiff may sue a defendant to obtain a remedy for a wrong committed by that person
Criminal law: Defines offences against society and the state
Private law: Laws dealing with relationships between individuals
Public law: Laws that apply to society generally
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

5. NSW COURT HIERARCHY
NSW Supreme Court (Court of Appeal and Criminal Appeal)
NSW Supreme Court (various divisions)
Land and Environment Court
Industrial Relations Commission
District Courts
Local Courts
State Tribunals
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

6. THE DOCTRINE OF PRECEDENT IN COURT CASES
The principal reasons for a court’s decision are referred to as the “ratio decidendi”
It is this part of the case that is binding on lower courts under precedent
Binding “precedent” means lower courts must follow the previous decision (ratio decidendi) of superior courts in later cases involving identical or similar facts
Binding precedence operates in a downwards direction
The purpose of precedent is for similar cases to be decided in similar fashion so that there is some consistency in the judicial system
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

7. RULES OF PRECEDENT
Decisions of higher courts are usually binding authority on lower courts in the same hierarchy where cases have similar facts
Decisions of judges on the same level are not binding but may be followed for consistency
Decisions of lower courts or courts outside the hierarchy are not binding
Superior appeal courts are not required to follow their own previous decisions (unless obviously wrong) but try to do so for consistency
Lower courts are not bound by the “obiter dicta” of a higher court but may choose to follow it (persuasive precedent)
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

8. FEDERAL COURTS HIERARCHY
High Court of Australia
Full Federal Court (Court of Appeal)
Federal Court
Full Family Court (Court of Appeal)
Family Court
Federal Magistrates Court
Any State court vested with federal jurisdiction
Federal Tribunals
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

9. THE ADVERSARY SYSTEM
The general nature of the legal system is “adversarial” – ie parties fight or dispute their legal claims in court
In recent times various bodies/tribunals have been established to provide alternate places and methods to resolve certain types of disputes. These methods are called “alternate dispute resolution” and examples of such tribunals include:
Community Justice Centres
Small Claims Division of the Local Court (up to $10,000)
Consumer Trader and Tenancy Tribunal
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

10. LOCAL COURTS IN NSW Supervised by Magistrates (“Your Honour”)
Geographic limits (operate in specific local areas in NSW)
Civil matters between $10,000 - $60,000
Minor criminal matters (summary offences)
Committal hearings for serious crimes
Court has limited powers to hear family law matters, and care and criminal matters involving children
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

11. NSW SUPREME COURT
There are a number of courts under this name which handle various types of legal disputes including:
Common law (civil matters over $750,000)
Criminal law (the most serious crimes such as murder)
Equity (specific performance and injunctions)
Probate (wills and property of deceased persons)
Matters commence before a single Judge and in criminal cases usually before a Judge and jury
The court can only deal with matters occurring in NSW (State boundaries)
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

12. NSW SUPREME COURTS OF APPEAL
Within the Supreme Court there are also courts of appeal that hear appeals from the lower State courts and from decisions of the single Judges within the Supreme Court
The courts of appeal comprise 3-5 Judges
The Court of Appeal handles appeals in all matters except criminal offences
The Court of Criminal Appeal hears appeals in criminal matters
Appeals may be made from these courts of appeal to the High Court of Australia (with leave)
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

13. FEDERAL COURT (single judge)
Original powers to hear matters involving Commonwealth law including:
Commonwealth taxation matters
Bankruptcy
Intellectual property (patents, trade marks, copyright and designs)
Trade practices law
Appeals can be made from the decisions of this court to the Federal Court (Court of Appeal) commonly referred to as the Full Federal Court (3 Judges)
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

14. FEDERAL MAGISTRATES COURT (single Judge)
Handles similar matters to both the Family Court and Federal Court but in some areas has more limited powers
Appeals can be made from this court to either the Full Federal Court or Full Family Court depending on the type of matter concerned
This court provides a cheaper and less formal method for handling family law and federal law matters
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

15. FAMILY LAW COURT
Established in 1975 to handle family law matters including dissolution of marriage, custody, access and property settlements
Matters are initially heard by a single Judge
Appeals can be made to the Family Court of Appeal (the Full Family Court) which comprises three Judges.
Appeals may lie from this Court of Appeal to the High Court of Australia (with leave)
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition

16. HIGH COURT OF AUSTRALIA
Established under the Commonwealth Constitution in 1901
Has original powers to hear constitutional disputes between the Commonwealth and States. Its major function is to handle appeals from State and federal courts
Original matters may be heard by a single Judge
Appeals are heard by a panel of Judges (3 or more) and in important appeals the court may sit with all 7 Judges
It is the most important and authoritative court in Australia
Appeals to the High Court are only allowed after the court itself has consented to hear the appeal (special leave to appeal)
2011 Thomson Reuters Legal & Regulatory Ltd. All Rights Reserved. PowerPoint slides to accompany A Guide to Business Law, 19th Edition