Preventing Precedent – Good or Bad?

Whatever they told you in law school about the difference between common law system based on case law and a codified civil law system, the truth of the matter is that even a codified civil law system heavily relies on precedent. But in high-profile matters such as Lehman certificates litigation or or disputes about Clerical Medical’s life insurance policies, the creation of new precedents has increasingly been prevented, causing controversy. In these matters, typically dozens or even hundred of similar cases are pending in different district courts and courts of appeals across the country, all eagerly waiting for Federal Supreme Court (Bundesgerichtshof) in Karlsruhe to issue guidance. Continue reading