Short answer. It must explain both. Every decision or final resolution in an appealed case must clearly and distinctly state the findings of fact and conclusions of law it is based on, though the court may adopt those already set out in the decision or order being appealed rather than restating everything.
What the law says
Every decision or final resolution of the court in appealed cases shall clearly and distinctly state the findings of fact and the conclusions of law on which it is based, which may be contained in the decision or final resolution itself, or adopted from those set forth in the decision, order, or resolution appealed from.
Rule 51, Section 5 — Form of decision. Read the full provision →
Findings of fact and conclusions of law are mandatory
Section 5 imposes a content requirement on every Court of Appeals decision in an appealed case. Every decision or final resolution of the court in appealed cases shall clearly and distinctly state the findings of fact and the conclusions of law on which it is based. A bare disposition without explanation does not satisfy this standard, no matter how clear the outcome itself might seem to the court.
The court may adopt what is already below
The requirement does not force the court to reinvent the wheel where the lower ruling already did the work. Those findings and conclusions may be contained in the decision or final resolution itself, or adopted from those set forth in the decision, order, or resolution appealed from — the appellate court can incorporate the trial court's reasoning by reference rather than restate it in full.
Why this transparency requirement matters
Requiring the decision to clearly state its factual and legal basis lets the losing party understand exactly why the appeal succeeded or failed, and gives any further review — such as a subsequent petition to the Supreme Court — something concrete to examine, rather than an unexplained outcome. A decision that simply announces a result without this reasoning leaves both the parties and any reviewing court guessing at what actually drove it.
What adopting the lower ruling's reasoning implies
When the Court of Appeals adopts the findings and conclusions already set out below rather than restating them, it is affirming that reasoning as its own, not merely referencing it in passing. A party seeking further review of a decision that adopted the lower court's findings should treat that adopted reasoning as part of what the Court of Appeals decision actually said, since the appellate court has made it its own basis for the judgment being reviewed.
Who this obligation binds
Section 5 binds the Court of Appeals itself in every appealed case it decides — it is not a standard the parties can waive by agreement or by failing to raise it, since it goes to the form the decision must take regardless of how the parties litigated the appeal. A decision that omits this required explanation does not automatically lose its finality, but the missing reasoning can become the very basis for a party to seek reconsideration or further review of the decision itself.
Related provisions
- Rule 51, Section 5 — Form of decision
- Rule 51, Section 4 — Disposition of a case
- Rule 51, Section 9 — Promulgation and notice of judgment