Judge issues AI warning after landlord uses fake law defence

A judge has warned AI users they could face contempt of court proceedings after the technology invented fake legislation and fictitious references in a case he heard.

Sheriff John MacRitchie dealt with a case brought by landlords seeking £5,000 in rent arrears from two former tenants at Kirkcaldy Sheriff Court.

The defendants, Your Home Partners, told the sheriff they were relying upon legislation called the Interest on Debts (Scotland) Act 1985. This legislation does not exist.

The sheriff said the claimants actions were reckless but did not find them in contempt of court.

In a judgement, he said: "The lodging of false legal references has the potential to obstruct justice."

The judge decided not to find the company in contempt of court as he said they didn't "knowingly" attempt to "interfere with the administration of justice" by wasting court time.

In Scotland, contempt of court in punishable by up to two years in jail or an unlimited fine.

The company also told the court that they were relying upon decisions made by tribunals who had heard similar cases.

Officials in Kirkcaldy repeatedly told Your Home Partners that the sheriff court was not the correct place to hear the case and it should take the case to a tribunal instead.

However the firm, which was acting without lawyers, said they were "relying on legal authority" which resulted in Sheriff MacRitchie allowing the matter to be argued before him.

The judge said he was unable to find the legislation or the cases which Your Home Partners were using to support their legal arguments.

Court staff contacted the tribunals concerned and were told the cases did not exist.

The company later conceded the cases and legislation did not exist and said it had used AI in preparing its case.

The judge referred to an English case involving Haringey Law Centre and Haringey Council, where legal action was raised against a lawyer who used a fake law as a defence.

In what is thought to be the first time the matter has arisen in Scots law, Sheriff MacRitchie said AI use had the potential to clog up valuable court time.

He wrote: "There was a degree of recklessness in the claimant delaying verifying that the references produced by artificial intelligence were genuine, until only after the relative submissions were lodged.

"There is a fine line in this instance between whether the claimant and its individual partners, even as lay persons, have shown contempt for the court by not reasonably checking that such references were genuine before using them in this manner, or otherwise."

The sheriff dismissed the bid to recover the alleged rent arrears, adding the law states that the correct place to pursue the action is a specialist tribunal.

He added: "What this claim does highlight, is the dangers of a reckless reliance on artificial intelligence by any party without verifying that the same is genuine, and the potential for a party being found in contempt of court in circumstances such as these, even if done in good faith."