Common law is a force in the legal profession — despite not actually being enshrined anywhere in California or the federal legal system. Instead, common law legal systems are crafted by the judiciary, setting the standard for future rulings and guiding otherwise unanswerable legal questions.
For a law firm like Dahl Law Group, where we offer a range of practices including business law, asset protection, and tax strategy, we need to be keenly aware of and tuned into common law systems. All areas of law have some connection to common law, but each of our practice areas are impacted in different ways. By adapting common law principles to modern business law, estate planning, and tax strategy, we empower our clients to protect what they’ve built and avoid costly legal problems.
What is Common Law?
Unlike what is known as statutory law, which is based on written legislation by lawmakers, common law evolves through court rulings and interpretations. This means that judges play an active role in not just upholding the law but shaping it by interpreting how it applies to specific cases. Over time, these interpretations create a body of case law that serves as a guide for future legal disputes. This is only further enhanced by the recent overturning of the Chevron deference, which empowers the judicial branch, rather than federal agencies, to interpret vague legal language..
Rather than relying solely on written laws, courts look to prior rulings to ensure consistency in how legal principles are applied. This creates a more flexible legal system, but it also requires careful attention to past cases to ensure the best possible outcome for clients — something our lawyers are consistently on top of.
How Common Law Impacts California Businesses
Running a business in California requires a careful navigation of both statutory law and the common law system. For example, disputes over contracts, employment agreements, or intellectual property rights are often resolved using common law principles. Past rulings in relevant cases play a significant role in how a judge might interpret the terms of a contract or decide whether a business has met its legal obligations to employees. Statutory law doesn’t have an answer to all situations because, frankly, that would be impossible.
For business owners, this means it’s necessary to understand how common law precedents may affect their operations. A well-drafted contract today could prevent years of litigation down the road if it aligns with the established body of case law.
Partnering with a law firm like Dahl Law Group ensures your business is structured and prepared to reduce the risk of future legal disputes as it relates to both statutory and common law.
How Common Law Impacts Your Assets
As it applies to estate planning and asset protection, common law can offer both opportunities and risks. Courts in California often look to precedents when resolving disputes over wills, trusts, and other estate matters. This is especially important in a state like California with a history of famous estate disputes and means that if a dispute arises over the interpretation of language in a will or trust, the outcome could depend heavily on how similar cases were decided in the past.
A thorough understanding of common law is essential for protecting your assets and ensuring that your estate plan is legally secure.
How Common Law Impacts Your Tax Strategy
Your tax strategy needs to be both cost-effective and within the boundaries of both written and common law legal systems. While tax law is largely governed by statutes and regulations, courts play a significant role in interpreting how those laws are applied. Disputes that arise over tax deductions or credits are often resolved through litigation, with courts relying on precedents to determine the outcome.
For high-net-worth individuals and business owners, this makes it essential to work with a law firm that understands both tax law and the role common law plays in shaping tax outcomes. We help clients develop tax strategies that minimize risk and ensure compliance with both statutory and common law. By staying on top of relevant court rulings, we’re able to provide strategic advice that keeps your tax planning in line with the latest legal interpretations.
Contact Dahl Law Group to Protect Your Hard Work
Whether you’re running a business, planning your estate, or developing a tax strategy, common law plays an important role in shaping the outcome of your legal matters. At Dahl Law Group, we’re more than just attorneys — we’re allies in helping you protect your hard work. Contact our Sacramento or San Diego office today to discuss how we can assist you with your business, estate, and tax planning needs.