How are precedents used in the American legal system?

Answer 1

It depends on the type of law before the court in a particular state.

Usually, the decisions made by the appellate courts of other states are instructive or persuasive in making a decision, but the courts of State A are not bound in any way by the rulings of courts in States B, C, etc. In certain cases of federal legislation that have state-enforcement components or state legislation that is more or less homogeneous across the states (like the UCC), the legislation creates a higher standard for state courts ruling on an issue already adjudicated by the courts of one state, often arguing that unless a compelling reason presents itself to rule contrary to the court of a different state, to follow that ruling. However, unlike superior in-state courts, the rulings still do not completely bind the state court.

The only time (in common practice) that the law of another state is binding is when a choice-of-law clause in a contract makes clear that another state's law is the law to be applied or, similarly, when the majority of the elements of a case have a nexus with a different state than the one in which suit is brought and the court consents to use that other state's law is the law to be applied. For example, let us say that two California corporations decide when they write a contract that the contract will be governed by New York Law. Rather than fly to New York to settle a dispute, they will go to a California Court, but the California Court will apply New York Law and New York precedent because of the respect for the choice-of-law clause in the contract.

There are also circumstances where courts will say that the decisions of the courts of a different state have no useful probative value because the precedent is either from an unrelated issue or the court and legal system is just too different. This issue most commonly arises between Louisiana and other states because Louisiana has a common-civil law hybrid system as opposed to the other 49 states which have a common law system.

Answer 2

Courts of a state can use precedent from courts of another state as a form of guidance