What happens when a lower court's judgment is reversed due to a prejudicial error?

When a lower court's judgment is reversed due to a prejudicial error, a new trial is typically granted. This means that the appellate court has determined that the error made in the initial trial was significant enough to have potentially affected the outcome of the case. As a result, the court seeks to ensure fairness and justice by allowing the case to be heard again, giving both parties the opportunity to present their arguments and evidence under corrected conditions.

This process underscores the appellate system's role in maintaining the integrity of the legal process. A new trial allows for the issues raised in the appeal, including any improper procedures or incorrect applications of the law, to be addressed fully. This helps to ensure a more accurate and equitable resolution of the case, rather than simply allowing the previous decision to stand despite identified flaws in the legal proceedings.

In contrast, dismissing the case would imply that it cannot be tried at all, gathering new evidence could occur but is not a direct consequence of a reversed judgment, and upholding the verdict would contradict the acknowledgment of a prejudicial error by the appellate court. Therefore, granting a new trial is the most appropriate and common remedy in such circumstances.