• DE
Choose your location?
  • Global Global
  • Australian flag Australia
  • Canadian flag Canada (FR)
  • French flag France
  • German flag Germany
  • Irish flag Ireland
  • Italian flag Italy
  • Polish flag Poland
  • Qatar flag Qatar
  • Spanish flag Spain
  • UAE flag UAE
  • UK flag UK

Fudged it: criticisms of the use of AI in legal proceedings

17 September 2026

A recent Outer House decision has placed further spotlight on the limits of reliance on artificial intelligence within litigation. The case is the latest in a growing pattern in Scotland (and beyond) which addresses this issue. 

In McCandlish Farmhouse Confectionery Limited and Anr v Michael Malone and Anr [2026] CSOH 85, Lord Sandison's judgment is ostensibly about trademark infringement and passing off, but it contains a clear running criticism throughout: AI-generated material is alone not enough to build a legal case that can withstand the tests applied by the courts.

Background

The dispute centred on the sweets "Chelsea Whoppers": chocolate-covered fudge fingers originating from the Second World War. The pursuer, a small family-run confectionery business, claimed trademark rights and goodwill in the product's name and packaging, and sued a sole-trader for infringement and passing off who was selling similarly-branded confectionary. Damages were "conservatively" estimated at over £1 million. The pursuer's case was largely advanced by a lay representative, a company director. The defenders also represented themselves.

Legal context and decision

Lord Sandison ultimately found that one of the two trademarks relied upon had been infringed for a period, but declined to award any of the damages sought, and refused permanent interdict given an undertaking already offered by the defender to refrain from further producing the sweets. The passing off claim failed outright for lack of evidence of goodwill in the pursuer's product, or actual consumer confusion between the two. Central to this outcome was the court's finding that the pursuer's claims of brand dilution, reputational harm, and rebranding costs were unsupported by any evidence at all, with promised independent survey evidence never materialising.

Criticisms of the use of AI

Lord Sandison observed early on that much of the material presented by the pursuer "had every appearance of being abstract and generic content produced by artificial digital means", and that the presentation of the case seemed "influenced at least as much by what that content indicated should be said as by demonstrable facts". This seemingly shaped the entire trajectory of the litigation. Affidavits made claims about both defenders' involvement, that prior court records from a previous claim directly contradicted. Repeated claims of market confusion arose solely from family testimony. The Pursuer placed heavy reliance on one particular email that, read in full, actually discredited their claim. 

At the conclusion of proof, Lord Sandison reiterated his criticisms, branding the claim "a salutary lesson in how AI may prompt lay persons to say the right things in pleadings, but cannot furnish the evidence needed to establish those statements". Later, in dissecting the pursuer's quantification of damages, he observed that "all of these claims existed in the AI realm only".

The mere attempt by lay representatives to advance litigation should not be criticised; full access to the courts is a fundamental aspect of the Rule of Law. AI models can be helpful within that process. However, the judgment draws a clear and important line. AI models may also be genuinely useful for structuring an argument, suggesting the right legal categories to plead, or producing a plausible outline of submissions, particularly valuable for a litigant without legal training or resources. 

However, despite its exponential advancement in recent years, AI still falls short of providing a fully-packaged case that is sufficiently comprehensive to withstand judicial scrutiny. The result, as this case shows, is pleadings and submissions that might initially read persuasively, but quickly fall apart in practice. This lesson is not exclusive to lay representatives and can equally be applied to solicitors. 

Conclusion

The role AI has in our personal and professional lives is a hot topic, and this case is further evidence of that. It demonstrates the courts' increasing alertness to AI's fingerprints in legal proceedings, whilst providing useful clarity on the parameters in which it should be used. The compiling, interpretation and presenting of evidence to formulate a case is both an objective and subjective exercise. At proof, that evidence requires to be advocated for. Those tasks, at least for now, cannot be outsourced to a language model. 
Find out more about our related services; Sign up for an event or mailing list; Download a report For further examples of DWF insights into the use of AI in legal proceedings, please also see our articles about Agentic AI challenges, Generative AI and confidentiality and A guide to AI for trainees and junior solicitors.

If you have any questions about topics raised above, or would need legal advice on how similar use of AI could affect your business, please contact the authors below.
 

Further Reading