Legal principles enunciated and embodied in judicial decisions that are derived from the application of particular areas of law to the facts of individual cases.
As opposed to statutes—legislative acts that proscribe certain conduct by demanding or prohibiting something or that declare the legality of particular acts—case law is a dynamic and constantly developing body of law. Each case contains a portion wherein the facts of the controversy are set forth as well as the holding and dicta—an explanation of how the judge arrived at a particular conclusion. In addition, a case might contain concurring and dissenting opinions of other judges.
Since the U.S. legal system has a common-law system, higher court decisions are binding on lower courts in cases with similar facts that raise similar issues. The concept of precedent, or STARE DECISIS, means to follow or adhere to previously decided cases in judging the case at bar. It means that appellate case law should be considered as binding upon lower courts.