This thesis aims to describe a phenomenon of judicial law-making in 21st century. The thesis is concerned with two main issues, specifically the binding effect of prior judicial decisions and the boundaries of judicial authority in law-making. The thesis begins with a description of essential terms and it focuses especially on a type of judicial decisions-making, which results in not following plain and clear language of the applicable statute. A judge is not free in his choice when to avoid the language of the statute. He is limited by values embedded in law by legislator, which he cannot exceed and extend. Therefore this activity is deemed to be a method of selecting an applicable legal norm, not creation of new law. The thesis further explains when not following plain and clear language of the applicable statute can be in reasonable cases justifiable. This part is followed by specific parts dealing with the particular forms of the judicial law-making within the bounds of two legal systems - common law and civil law. In the conclusion the paper draws a comparison between the judicial law- making in mentioned legal systems. The thesis concludes that there is a difference between the systems in the concept of bindingness of prior judicial decisions. Yet, both systems reach the stability of court...