Legal precedent
A legal precedent is a court decision that serves as authority for deciding later cases with similar facts or issues. Under stare decisis, lower courts must follow binding decisions of higher courts in their hierarchy. Precedent gives the law consistency and predictability.
How BC law treats it
In BC, the Supreme Court of Canada binds all courts, the BC Court of Appeal binds the BC Supreme Court and Provincial Court, and the BC Supreme Court generally follows its own prior decisions unless a recognized exception applies, such as a decision made without considering a binding authority (Re Hansard Spruce Mills Ltd, [1954] 4 DLR 590 (BCSC)).
What it means for your business
Precedent helps a BC business and its lawyers predict how a court may decide a dispute.
Risks and common mistakes
Relying on an old decision that has since been overruled or distinguished can lead to a wrong assessment of a case.
For the full explanation, see our entry on Precedent.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
