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To answer the question do courts decisions constitutes a source of law or not? Differs according to the legal system whether its the Anglo-Saxon system or Latin system?
2- Latin System:
In the French legal system, the judges are not allowed to develop principles of law in their judgments. They only apply law and their decisions can be attacked on the ground that they misapplied the enactment (law) or that they wrongfully neglected it. There is a well-established principle that the judgments made by judges can only have a relative authority limited to the relevant case and obligatory only on the parties of that case. Although French judgments do not by themselves establish rules of law, which are binding in a formal sense; but there is a well-established practice that lower court will normally follow the jurisprudence of the cassation court although they are not legally bound to do so. French judges may also use this jurisprudence to support their interpretation of law but they may not justify their decision upon that jurisdiction. The cassation court opinion is binding in one case as follows: if the court of appeal decision was challenged before the cassation court which admitted the challenge and issued decision, and remitted case to appeal court again, here the appeal court wont be bound by the cassation court decision. (T/F) However if a second challenge (Pourvoi) is presented in the same case, the decision of cassation court will be binding up on the court of appeal to which the case is remitted (). But it should be noted that such a decision is binding in that case only, so if the same point is raised the next day before the same Court of Appeal in another case, the court is free to neglect the cassation court opinion made in the previous case.
However, due to the establishment of the Court of Cassation in most of Latin countries, things in practice look different because its decisions are respected and lower courts follow the principles which it has adopted, but it is still not binding legally. However cassation court decision is binding in certain cases: Ex1: in case a judgment has been challenged before the cassation court, law obligates the court, to which the judgment is overruled by the Court of Cassation, to follow the principle made by the latter in connection with the legal question raised by the challenge. Ex2: the courts of felonies within Cairos Appeal Court when dealing with challenges against the misdemeanor courts, judgments must follow prevailing legal principles decided by the Cassation Court. If the above mentioned courts rules contrary to those principles, then, the general prosecutor shall ask Cassation Court to submit the matter to the general meeting of criminal matters (in the cassation court) to determine whether to overrule the dissenting (violating) judgment.