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In 1961, in R v United Railways of the Havana and Regla Warehouses Ltd the House of Lords decided that damages awarded in an English civil case could only be awarded in sterling. The issue came up for reconsideration 1976, by which time there had been significant changes in foreign exchange conditions and the instability of sterling at the later date was of much greater concern than it had been in 1961. In the second case Miliangos v George Frank (Textiles) Ltd the House of Lords overruled the earlier decision, stating that damages could be awarded in other currencies. .
The next court in the hierarchical structure is the Court of Appeal. Decisions of the Court of Appeal are binding on all inferior courts trying civil or criminal cases, including divisional courts. The Court of Appeal is bound by decisions of the House of Lords, and by its own earlier decisions. The latter principle was affirmatively established in the leading case of Young v Bristol Aeroplane Co Ltd Lord Greene MR, who delivered the judgment of the court, cited three exceptional circumstances in which an earlier decision of the Court of Appeal would not be regarded as binding. Firstly, when there are two conflicting decisions, the court which it will follow, the decision not followed being deemed to be overruled. Secondly, the court is bound to refuse to follow a decision of its own which though not expressly overruled, cannot stand with a later House of Lords decision. Thirdly, the court is not bound to follow a decision of its own if that decision was given per incuriam. In addition to the exceptions, there is also a possibility that as a consequence of s 3 of the European Communities Act, the Court of Appeal can ignore a previous decision of its own which is inconsistent with European Community law or with a later decision of the European Court of Justice. .
Below the hierarchy, the Divisional Court is bound by decisions of the House of Lords and Court of Appeal in both civil and criminal cases.
