Diary news plus insights, commentary and appointments from the legal world
24 April 2026
Editorial contact: fennell.edward@yahoo.com
SHORT THOUGHT FOR THE WEEK: Believe in the Impossible?
It had to happen – and maybe it’s happening already on an unimaginable scale. But for a firm with the resources and heritage of Sullivan & Cromwell to be caught filing a brief in a bankruptcy case that contained fake citations generated by AI does somewhat beggar belief.
Or it would do were it not for the fact that in the USA especially so many impossible things seem to be happening routinely. One is reminded of the Queen in Lewis Carroll’s Alice in Wonderland who confessed, “Why, sometimes I’ve believed as many as six impossible things before breakfast.”
Unless AI is cautioned – especially in the law – we’ll all soon be doing the same.
The LegalDiarist
In this edition
+ LEGAL DIARY OF THE WEEK
Risk of Missing Out on Critical Legal Skills
Putting Your Skills To Work for Your Values
Social Media Now Central To Attract Younger Clients
Employment Lawyers to be Run-off-Their-Feet?
+ CONTRIBUTED ARTICLE OF THE WEEK
Who Is Responsible When Crypto Funds Vanish? The Impact of the Drift Hack on Legal Precedents in UAE by Mahmoud Abuwasel
+ LEGAL COMMENT OF THE WEEK
on cracking down on crypto trading, parentage and sperm donors, status of adoption, sports branding,
the UK Biobank scandal, a £600k. inheritance battle and assisted dying.
+ APPOINTMENT OF THE WEEK
at Farrer & Co.
LEGAL DIARY OF THE WEEK
Risk of Missing Out on Critical Legal Skills
The speed and scale of the AI revolution in law is creating mayhem – as illustrated not least by the Sullivan and Cromwell story (in ‘Short Thought’ above). But navigating through the changes without a clear idea of where it’s all heading risks major errors ahead. This is especially true when it comes to the training and formation of newbie lawyers.
According to a recent study from The Positive Group, a leadership consultancy, the urgency with which GenAI is being adopted is having a big impact on the traditional ‘apprenticeship’ model. Entitled The AI Leadership Challenge in Law, the report was produced in collaboration with researchers from Harvard Business School, RSGI, and Hubel Labs. Drawing on insights from sixteen of the industry’s most influential decision-makers – including Managing Partners, Chief AI Officers, and heads of professional standards from firms including Orrick, Herbert Smith Freehills, Baker McKenzie, Bird & Bird, A&O Shearman, White & Case, and Gilbert + Tobin – the report concludes that the traditional apprenticeship model (which for generations has shaped how trainees develop legal judgement, expertise and the skills needed to further their careers) is now at risk.
In brief, under the old system the trainee would develop critical skills need for future responsibilities by undertaking a high volume of repetitive tasks in areas of document review, due diligence, and research. However, if those tasks are now being undertaken by AI then that vital part of a young lawyers’ formation will be eroded leaving a ‘capabilities gap in their future talent pipeline’.
And that is not all. An over-reliance on AI – a presumption that it must always be right – is switching off the instinctive caution and questioning mentality which led towards a prudent approach. Instead, young lawyers are being inducted into ‘a dangerous psychological bias where outputs are accepted at face value’.
This needs to be stopped, the report suggests. Instead leaders in law firms are now being encouraged to take a more active role in shaping how junior lawyers engage with AI through clear narratives, role-modelling, and creating environments where questioning and critical thinking are actively encouraged.
Our advice? Do it now before the AI puts a stop to it!
Putting Your Skills To Work for Your Values
You cannot say that Clarke Willmott LLP does not wear its heart on its sleeve with a proud and demonstrable commitment to its Environmental, Social and Governance (ESG) strategy.
“At Clarke Willmott, our role in the community extends beyond delivering successful transactions,” says Partner Fraser MacRae. “We are committed to helping projects that create long‑term social, economic and environmental value for the people and places we serve,”
A key part of the firm’s commitment is its work with Triodos Bank UK, an ethical lender known for financing organisations that deliver social and environmental benefit.
Amongst recent projects has been advising Triodos on its funding package for Broadband for the Rural North (B4RN), a community benefit society which is connecting some of the UK’s most isolated rural communities with full‑fibre, high‑speed broadband.
The B4RN model, powered by local volunteers, landowners and community investors, is now being deployed to under-served parts of the North and North East, including Northumberland and County Durham.
“We are delighted to support long‑standing client Triodos Bank in this important deal providing finance to B4RN, a project that makes a real difference to rural communities and aligns closely with our commitment to socially responsible and sustainable initiatives,” said Bethan Evans, one of the Partners involved in the deal. “The project also demonstrates how collaboration between banks, volunteers and local stakeholders can create lasting social and economic benefits in areas often overlooked by traditional providers.This work highlights the role Clarke Willmott plays not only in completing complex legal transactions, but in enabling clients to deliver high‑impact, community‑focused projects. From sustainable finance to social value partnerships, our teams are proud to help organisations turn purposeful ambitions into tangible outcomes for the communities they serve.”
The firm will surely be the toast of the borders.
Social Media Now Critical To Attract Younger Clients
Social media is playing an increasingly important part in people’s perceptions of law firms. That will come as no surprise to anyone under 50. But for partners coming to the end of their careers it might take a bit of digestion.
Based on a UK-wide survey conducted in Q4 2025 and sponsored by Katchr, over half of clients aged 18–29 and 30–44 said a law firm’s social media presence is either vital or preferable when choosing who to instruct. Whether young or old, however, recommendations, proximity and the ability to meet a lawyer in person rank among the most important factors when choosing a law firm.
Laura Lack, Community Manager at the Law Firm Marketing Club, said, “What this data shows is a clear perception gap. Many law firms assume social media doesn’t matter to clients, and for older generations, that is often true. However, for younger adults, social media acts as a reassurance signal that a firm is active, current and approachable.”
The data suggests that as younger generations move towards becoming the core users of legal services, law firms may need to reconsider how social media fits into the wider picture of credibility, visibility and first impressions over the next decade.
According to the survey, “Clients increasingly expect a hybrid experience. They still value personal contact and human reassurance, but they also want digital convenience alongside it. A strong website, positive online reviews and good search visibility now carry almost as much weight as traditional word of mouth, particularly among clients under 45.”
Employment Lawyers to be Run-off-Their-Feet?
Employment lawyers can expect a beano of new work arising out of the creation earlier this month of the Fair Work Agency whose role is to act as the single enforcement body to enforce a number of incoming changes regarding the Employment Rights Act.
Combining the Employment Agency Standards Inspectorate, the Gangmasters and Labour Abuse Authority and HMRC’s National Living and Minimum Wage into a single enforcement body is designed to giver more weight and coherence to what is (oddly enough) a Labour Government’s commitment to act in workers’ interests.
“The FWA brings together existing enforcement functions, including minimum wage and statutory sick pay enforcement, labour exploitation and modern slavery and introduces the new state enforcement of holiday pay,” explains Jo Mackie, an Employment Partner at Michelmores. “The penalties for breach of regulations overseen by the FWA are significant and some would say severe. For example, for national minimum wage breaches, employers face penalties of 200% of the total underpayment (capped at £20,000 per worker) and public ‘naming and shaming’, with the potential for further penalties if non-compliance is repeated. There is also the power to prosecute directors and make them personally liable for some legislative breaches.
“To enable it to function effectively the FWA has been given new extensive statutory powers to seize documents and digital evidence as part of its role. These powers, which also came into effect in April 2026, allow officers to compel the production of records and, in certain situations, use reasonable force to seize materials to investigate breaches of employment rights.”
With such penalties looming employment lawyers can expect to be working overtime.
CONTRIBUTED ARTICLE OF THE WEEK
Who Is Responsible When Crypto Funds Vanish? The Impact of the Drift Hack on Legal Precedents in UAE
By Mahmoud Abuwasel
A $286 million loss in just 12 minutes has left the crypto industry scrambling to answer one urgent question: who is responsible when digital assets disappear? The culprit: attackers who used social engineering to trick Drift Protocol’s security council into handing over administrative control of the Solana-based exchange. UAE courts have been grappling with questions like this for years, establishing legal precedents that are now more crucial than ever.
With over 100 rulings on fraud, platform liability, and custody failures, UAE courts have consistently applied traditional asset recovery doctrine to crypto disputes, rejecting the “decentralized protocol” defense and treating these cases as governed by long-established commercial law principles.
On April 1, 2026, attackers who had spent months posing as a legitimate trading firm exploited Drift Protocol’s security council, using a Solana technical feature to execute pre-authorized transactions that handed over full administrative control. The attackers had also manufactured a worthless token, artificially manipulated its price, and deposited it as collateral, which Drift’s own systems accepted as legitimate. That is not a smart contract failure. It is a governance and oversight failure, and the question of where liability sits when a platform’s own systems are turned against its users is one UAE courts have been answering across more than 100 crypto rulings. In under 12 minutes, $286 million was gone.
The underlying legal challenges include determining liability when funds are lost, evidentiary requirements for blockchain transactions, and platform responsibility. These issues have already been addressed in UAE courts. UAE judges have ruled that blockchain evidence alone is insufficient. Platforms must provide clear, verifiable documentation, a bar higher than most claimants expect. UAE courts have also set precedents for holding exchanges accountable for losses, particularly when their terms and conditions fail to adequately protect users.
With 25.3% of its population owning cryptocurrency, the UAE has established itself as a leader in crypto litigation. Its three legal frameworks, civil law, common law (DIFC), and the Abu Dhabi Global Market framework, offer a comprehensive approach to resolving disputes that is already being studied by practitioners in the U.S., UK, and EU. UAE courts have been deciding these cases since 2019. As identical disputes now arrive in those jurisdictions, that seven-year body of outcomes covers fraud, custody failures, platform liability, and asset recovery. It is the closest thing to a tested playbook the global market has.
UAE courts have handled the full range: token valuation disputes, anti-money laundering concerns in property deals, custody failures. Traditional commercial law holds in each. The questions Drift raises are not novel in the UAE. They have been litigated, ruled on, and appealed. That body of outcomes is what U.S., UK, and EU courts will be reaching for as identical disputes arrive on their dockets. The Drift hack is new. The questions it raises are not.
Mahmoud Abuwasel is author of UAE Crypto Litigation
LEGAL COMMENT OF THE WEEK
TOPIC: The first crackdown on illegal crypto trading by the Financial Conduct Authority
COMMENT BY: Thomas Cattee, Partner, white-collar crime, Gherson Solicitors LLP
“This latest announcement from the FCA demonstrates a continued pro-active willingness to pursue individuals alleged to be involved in unregistered crypto-asset activity. The specific activity this time being investigated is unregistered peer-to-peer (person to person) crypto trading. This is part of a wider strategy to disrupt un-registered activity and the first time the FCA has specifically focused on the unregistered peer-to-peer crypto trading.
Although implementation in the UK of an active crypto regulator regime is still in the pipeline (and scheduled to be effective from October 2027), various activities involving cryptoassets still require FCA registration, including for AML purposes.
In the past, the FCA has demonstrated a willingness to actively pursue unregistered cryptoasset activity, including prosecuting an individual operating an illegal network of crypto ATMs and individuals suspected of running an illegal cryptoasset exchange.
In the latest news, the FCA have demonstrated that they are willing, in conjunction with other agencies, to go after individuals alleged to be involved in unregistered peer-to-peer crypto trading.”
TOPIC: The judgment of Sir Andrew MacFarlane, outgoing President of the Family Division, in the case of Re N (Paternity: Unregulated Sperm Donor) involving the serial sperm donor, Robert Albon (aka Joe Donor).
COMMENT BY: Connie Atkinson, Family Law Partner, Kingsley Napley (who advised the mother in the case).
“On behalf of our client, we are extremely pleased with the Court’s decision not to grant a declaration of parentage in Mr Albon’s favour. Whilst he is the biological father, it would not have been appropriate for him to be able to assert himself as a legal parent or to exercise any of the rights that may flow from that.
This case provides another important lesson for those considering using a sperm donor to conceive. Proper research needs to be undertaken and, if you are not in a position to use a UK licensed clinic (which gives more certainty about legal parentage), advice should be taken about conception and legal parentage and also the likely outcome in the event of a breakdown of any of the relationships involved. Entering into a preconception agreement encourages discussions about a number of practical issues and helps to avoid lengthy, expensive and emotionally draining disputes.
As modern family set-ups become ever more prevalent, as a Family lawyer I am involved in an increasing number of disputes over parental rights and contact arrangements. Preconception agreements are not legally binding but encourage a dialogue about all intended parents’ hopes and serve as an important record of the parents’ intentions at the time.”
TOPIC: The failed attempt to undo the adoption of two sisters after judges said that to do so would go against the long held principle that adoption is “final and permanent”
COMMENT BY: Sarah Williams, Family Partner and Head of Children, Forsters
“The Supreme Court has reaffirmed the principles of finality and permanence in adoption law. Adoption isn’t a flexible or temporary arrangement that can be revoked when family dynamics shift, rather it is a transformative legal order which cements life long legal parentage.
“Allowing revocation in adoption cases would introduce uncertainty into a system that depends on stability and certainty for children and also confidence for adopters. The court has drawn a clear line reiterating that revocation is only applicable in highly exceptional circumstances.”
TOPIC: The evolution of sports branding beyond traditional logos and sponsorships
COMMENT BY: John Ferdinand, Partner and Trade Mark Attorney, Marks & Clerk
“The sports sector is one of the most dynamic and fastest-moving when it comes to IP.
The spectrum of IP rights – including patents, copyright, designs, trade marks and rights of personality, as well as creative IP protection and licensing strategies – is important to the various stakeholders in sport. This ensures that truly iconic brands can be built, commercialised and promoted and integrated into the cultural zeitgeist.
The whole purpose of sport is to create competition, entertain and engage fans and the public and athletes, sportsmen and women can often become iconic in the public imagination. This means sports brands, sponsors and other commercial partners have a unique opportunity to use the platform of sport to grow and enhance their brand reputation and awareness in new ways.
We are now seeing athletes seeking trademark protection on their viral signature celebrations, gestures and non-traditional brand assets as valuable forms of IP. The global stage of the FIFA World Cup serves as a high-stakes arena for this where IP rights in football are often most visible. One example is where athletes have sought to formalise ownership of their personal “signatures” so they can control commercial use, ensure the exclusivity and value of their brand identities, successfully engage commercial partners and tackle unauthorised misuse.
A prime example is the growing trend of trade marking specific goal celebrations – most notably in cases like Ronaldo’s protection of the “Siuu” celebration and, more recently, Cole Palmer’s protection of his “Cold Palmer” celebration. This demonstrates how a momentary gesture can transform into a valuable commercial asset, which athletes can benefit from to support commercial ventures and help build a long-term, multi-media brand identity during and beyond their on-field careers.
The future of sports IP lies not only in protecting what fans buy, but also what they remember and share. These viral gestures and celebrations now hold as much commercial value as traditional trademarks.”
TOPIC: The theft and attempt to sell the anonymous medical information of 500,000 participants inthe UK’s health data project, UK Biobank
COMMENT BY: Will Richmond-Coggan, Partner specialising in data breach litigation, Freeths LLP
“It is important to understand that just because this data was ‘deidentified’ doesn’t stop it being personal data. The level of information included about home location and personal circumstances, coupled with potentially highly individual medical symptoms, may present a real risk of re-identification. This is why such data is still treated as special category personal data, and organisations handling it ought to be putting a robust framework of protections in place to protect such information.”
COMMENT BY: Kristy Gouldsmith, Data Protection Partner, Spencer West LLP
“The public needs to understand how this breach happened and what UK BioBank will do to prevent further breaches. It is a significant data breach for the health information of 500,000 members to be offered for sale on Alibaba. Alibaba is a regular website that anyone can buy a product from. It’s fortunate that no sales were made considering that the information was listed for sale three times. UK BioBank needs to explain how a breach of this magnitude happened.”
TOPIC: The £600K inheritance fight between Robert Chung, Richard Chung and Maria Bennett
COMMENT BY: Amanda Smallcombe, Partner and Head of Private Wealth Disputes, Birketts LLP
“Parents commonly talk to their children about what they might inherit upon their death. However, for a promise relating to land or property to be legally binding, the person relying upon it needs to establish all the elements of a claim in proprietary estoppel; that a promise or assurance was made, was relied upon and it would be detrimental if not honoured.
“These claims most commonly arise in farming families where land or a farm is promised in return for years of work for little or no renumeration. This case, however, illustrates the same issues can arise in relation to a normal family home and will, perhaps, do so more frequently as care fees increase and children care for their parents in their own homes.
“Rather unusually, the son is relying on proprietary estoppel as a defence to a claim for possession for the property and rent for his occupation of it which is pursued by the professional administrator of the estate rather than the other beneficiaries.
From an evidential perspective, a key issue for the court will be that the opposing siblings do not appear to have direct, first‑hand knowledge of the alleged promises made by the parents. In cases of this kind, where assurances are said to have been private and informal, that absence of direct evidence can be highly significant.”
TOPIC: The End For The Assisted Dying Bill
COMMENT BY: Jasmine Ivory, Managing Associate. Michelmores
“There will be a range of responses to the news today that the Terminally Ill Adults (End of Life) Bill has not completed this parliamentary session. It is a matter for the politicians as to whether it returns to the House of Commons in September.
In absence of a legislative change, the legal position remains unaffected. All those individuals hoping to fall within the scope of the Bill and those who were always outside of it may choose to seek an assisted death overseas. Such a decision can have serious financial consequences for families – something which is frequently overlooked, misunderstood or simply not known about. Families who support their loved ones in seeking an assisted death may trigger the Forfeiture Act 1982. If an individual assists the suicide of another they risk giving up any financial interest they may have in their loved ones’ estate. This is an inherently difficult area to navigate in terms of risk and complexity: the legislative reach is extensive, and the scope of assistance is wide.
As the law stands, families involved in an assisted suicide will face a series of obligations post death in both the criminal and civil jurisdictions. This includes applying to the civil court for relief from the effect of the Forfeiture Act 1982. The latter is an often financially necessary step and a complex process which requires specialist advice.”
LEGAL SECTOR APPOINTMENTS OF THE WEEK
FARRER & CO
Fiona Lowrie (above) has joined Farrer & Co. as Senior Counsel in the firm’s Financial Services & Funds team which has grown its revenues by more than 30% over the past five years. Lowrie had previously been working in-house, most recently as General Counsel at C. Hoare & Co. This move, however, marks a return to Farrer & Co. where she had previously been a Knowledge Lawyer.
“We are delighted to welcome Fiona back to the firm,” said Grania Baird, Head of Financial Services & Funds at the firm. “Her deep understanding of the regulatory environment, combined with her recent in-house experience at a leading private bank, will be invaluable to our clients. Fiona’s return reflects both the strength of our team and the continued growth of our Financial Services & Funds practice.”
Lowrie commented, “[Farrer & Co.’s] collaborative culture and its focus on delivering clear, practical advice to clients were key factors in my decision to return, and I am looking forward to contributing to the team’s ongoing success.”
We hope that you’ve been interested or amused by something in this week’s LEGAL DIARY. If so do send on to colleagues.
And please continue sending your ‘Diary-type’ stories, insights legal comment and appointments to
fennell.edward@yahoo.com