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An appellate court evaluates the decisions of a lower court. Appellate court receives the final judgment from the district court or a regulatory agency. The courts make their decisions in an appealed case either by affirming or rejecting the ruling or by dismissing the appeal. An appeal passes through the intermediate appellate court first, and then proceeds to the high appellate court.  Intermediate and high appellate courts are both mandated to review appeals and determine the appropriateness of the original judgment. However, the intermediate appellate court reviews appeals only from a lower trial court and specified types of cases such as tax cases. They are referred to as courts of primary mandatory jurisdiction and can only address the procedural mistakes made by a trial court. The court is not mandated to review the opinion of the case or accept any additional evidence regarding the case. The court consists of a panel of two or three judges.  

The high appellate court, on the other hand, hears appeals from all levels of courts. They are also known as the local supreme courts. This court consists of a panel ranging from three to nine judges. The primary work of an appellate court is to review the decision of the previous court. The intermediate appellate court cannot affirm the decisions of the trial court after reviewing the decisions. However, in a high appellate court, the board of discretion can decide on whether to review the decisions or not.   

When the appellate court finds the defense valid and reverses the judgment, the losing party is held liable either criminally or civilly and is responsible for all the expenses occurred during the appeal. The appellant pays the cost of processing the appeal reports, normally done when an appeal is initiated. The theory involved is called the theory of contributory liability. The theory provides that the party is held liable for the primary acts that may have caused harm on the third party either directly or indirectly.

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