DEFINITION of 'De Novo Judicial Review'

De novo judicial review describes a review by a court of appeals of a trial court’s decision. De novo judicial review is used in questions of how the law was applied or interpreted. It is a nondeferential standard of review, meaning it does not place weight on the previous court’s finding. A de novo judicial review can reverse the trial court’s decision. "De novo" is a Latin expression meaning "anew," "from the beginning," "afresh." The term de novo judicial review is often also referred to as de novo appeal or simply, de novo review.

BREAKING DOWN 'De Novo Judicial Review'

In employment matters, de novo judicial review may be used to re-examine a trial court’s decision about employee benefits or mandatory arbitration. For example, an appellate court could use de novo review to override a plan administrator’s decision in an employee’s denial of benefits lawsuit filed under the Employee Retirement Income Security Act (ERISA). However, the courts may decide that by giving explicit discretionary authority to the plan fiduciary, employers could be subject to a more deferential standard of review that is more beneficial to employers.

The Importance of Different Standards of Review

There are different standards of review in law, and the standard of review that applies to a case has an important role in determining the outcome of an appeal. The courts use de novo judicial review when an appeal is based on a question about how the trial court interpreted or applied the law. The appellate court examines the issue anew and does not defer to the lower court’s decision.

Other standards of review are more deferential, meaning that they place some weight on the trial court’s decision. The clearly erroneous standard of review is what an appellate court uses to determine whether an error of fact, such as dishonest testimony by a key witness, influenced the outcome of the previous trial.

Understanding how the different standards of review work and which ones apply in which circumstances is important in evaluating the likelihood of winning on appeal. A client might not want to pay their attorney to represent them in an appeal they aren’t expected to win.

In reality, trials de novo are fairly uncommon due to the time and judicial resources required to try the facts of a case more than once. However, de novo review of legal matters on appeal is quite common.

RELATED TERMS
  1. Appellate Courts

    The appellate courts hear and review appeals from legal cases ...
  2. Bankruptcy Court

    Bankruptcy court is a specific kind of federal court that deals ...
  3. Stare Decisis

    Stare decisis is a legal principle which dictates that courts ...
  4. First To File Rule

    The first to file rule states whoever is the first party to file ...
  5. Judicial Foreclosure

    Judicial foreclosure refers to foreclosure proceedings that are ...
  6. Reasonableness Standard

    Reasonableness standard has several applications in finance that ...
Related Articles
  1. Investing

    Novo Nordisk Stock Trades Ex-Dividend Thursday

    Novo Nordisk will send its dividend payment on April 4 to shareholders of record as of March 27.
  2. Investing

    Novo Nordisk Q4 Net Below Street Expectations

    Though Novo Nordisk expects to enter sectors beyond diabetes, the results and future guidance failed to meet market expectations
  3. Investing

    Novo Nordisk: The Drug Firm You've Yet to Hear Of

    Novo Nordisk, a Danish drugmaker, makes billions primarily by fighting hemophilia and diabetes. Here's its story.
  4. Taxes

    Tax Court: Your Last Resort

    Appealing an unfavorable or unfair tax ruling may be your last chance to save your finances.
  5. Investing

    Is This Diabetes Stock a Better Bet Than MannKind? (MNKD, NVO)

    MannKind's (NASDAQ: MNKD) inhaled insulin, Afrezza, is incredibly intriguing, but Novo Nordisk's (NYSE: NVO) long-standing dominance in diabetes treatment and its research to develop insulin ...
  6. Investing

    Novo Nordisk Still One Of The Best Around

    Novo Nordisk is one of the best pharmaceutical companies in the world - and it's priced accordingly.
  7. Investing

    Novo Nordisk in Talks to Buy Global Blood Therapeutics (NVO,GBT)

    Early stage negotiations are on for a potential acquisition to give Novo a promising blood disorder pipeline.
  8. Investing

    FDA Approves Novo Nordisk Diabetes Drug (NVO)

    Xultophy enters a highly competitive U.S. diabetes drug market, with commercial launch planned for the first half of 2017.
  9. Investing

    Why do Debt to Equity Ratios Vary From Industry to Industry?

    Obtain a better understanding of the debt/equity ratio, and learn why this fundamental financial metric varies significantly between industries.
  10. Investing

    Novo Nordisk’s Hemophilia B Drug Gets CHMP Nod

    Novo Nordisk's Refixia drug got a CHMP nod, which takes it one step closer to final EU approval.
RELATED FAQS
  1. What debt/equity ratio is common for companies in the drugs sector?

    Find out more about the drugs sector, what the debt-to-equity ratio measures and what debt-to-equity ratio is common for ... Read Answer >>
  2. Typical Debt/Equity Ratios for the Real Estate Sector

    Learn the typical debt/equity ratios for companies in the real estate sector and discover how this measure of financial health ... Read Answer >>
  3. What debt/equity ratio is common for companies in the telecommunications sector?

    Learn the average debt-to-equity ratio for the telecommunications sector and how including operating leases can substantially ... Read Answer >>
  4. What debt to equity ratio is common for a oil and gas company?

    Read about the rising trend of debt financing in the oil and gas industry since the financial crisis as expressed through ... Read Answer >>
  5. What is considered a good net debt-to-equity ratio?

    Learn about the maximum acceptable debt to equity ratio, what it means about a company's capital structure and why the optimal ... Read Answer >>
  6. What is the average debt/equity ratio for the food and beverage sector?

    Find out more about the categories in the food and beverage sector and the average long-term debt-to-equity ratio for the ... Read Answer >>
Trading Center