Rule of decision

Definition

A legal standard that tells courts how to decide a particular issue when it arises in litigation, as opposed to a provision that grants parties the right to initiate litigation. A rule of decision applies once parties are already before the court.

Examples

• •Petitioners argue Section 47(b) is merely a rule of decision telling courts what to do when a contract's validity under the ICA arises in existing litigation, not an authorization to bring new suits.

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