What Are Appellate Courts?
Appellate courts (courts of appeals) review decisions from trial-level or other lower courts. They focus on whether the law was applied correctly and whether the lower court’s findings are supported by sufficient evidence. Appellate courts do not hold trials or use juries; panels of judges (often called justices) decide the outcome.
How Appellate Courts Work
- Purpose: Provide a mechanism to challenge and correct legal errors made at the trial level.
- Review scope: Appellate review typically examines the record from the lower court, written briefs, and—when allowed—oral arguments. The court assesses legal questions and the sufficiency of evidence, not to reweigh witness credibility.
- Possible outcomes: The appellate court may affirm, reverse, modify, or remand the lower court’s decision for further proceedings.
- Further appeals: Unsuccessful appeals can sometimes be taken to a higher court, ultimately to a supreme court (state or the U.S. Supreme Court), which accepts only a small fraction of petitions.
Structure: Federal and State Appellate Systems
- Federal: There are 13 federal appellate courts—12 regional U.S. Courts of Appeals and the U.S. Court of Appeals for the Federal Circuit. These courts are intermediate appellate tribunals below the U.S. Supreme Court.
- State: Each state has its own appeals system. Many states also maintain intermediate appellate courts to reduce the supreme court’s workload—41 states have at least one intermediate appellate court.
- Supreme courts: State supreme courts (or courts of last resort) and the U.S. Supreme Court sit at the top of their respective systems and review selected appellate decisions.
Why Appellate Decisions Matter
- Legal precedent: Appellate rulings interpret statutes and case law, often shaping legal standards and future decisions.
- Practical impact: Appellate outcomes can have immediate real-world effects—on enforcement of laws, business practices, and financial markets. For example, corporate stock prices sometimes react to the outcome of high-profile appeals.
Example: Uber and Lyft — California “Gig Worker” Litigation
In 2020–2021, appellate courts played a central role in disputes over California’s law reclassifying many gig workers as employees:
- Summer 2020: A California appellate court temporarily delayed implementation of the law while it considered an appeal, prompting a short-term boost in Uber and Lyft stock prices.
- October 2020: The California First District Court of Appeal ruled the law was legal and enforceable, requiring reclassification of certain drivers as employees.
- February 2021: The U.S. Supreme Court declined to hear the companies’ further appeal, leaving the appellate decision in place.
Key Takeaways
- Appellate courts review whether lower courts correctly applied the law and whether decisions are supported by evidence.
- They operate without juries and decide cases through panels of judges.
- The U.S. has 13 federal appellate courts; most states also use intermediate appellate courts.
- Appellate rulings establish precedent and can have significant legal and economic consequences.