Keep your finger on the legal world's pulse
17th April 2025
 
THE HOT STORY
California becomes first state to sue over Trump tariffs
California Governor Gavin Newsom has filed a lawsuit challenging President Donald Trump's sweeping tariffs on foreign imports. The suit, which marks the first time a state has sued over the levies, challenges an emergency power Trump cited giving him authority to enact them. The lawsuit cites multiple times from rulings by the Supreme Court against the Biden administration in its quest to forgive student debt, noting the high court called Biden's manoeuvres a "transformative expansion" of presidential authority. Newsom said if the Supreme Court is "consistent, then this lawsuit is a lock" for the state. The White House, which has argued the tariffs are tackling imbalances in international trade, dismissed the lawsuit and said it would continue addressing "this national emergency that's decimating America's industries."
TECHNOLOGY
Legal firms embrace Gen AI
According to the 2025 Generative AI in Professional Services Report by Thomson Reuters, the adoption of generative AI (Gen AI) among legal professionals has surged to 26%, up from 14% last year. The report, based on a survey of 1,700 professionals across the U.S., Canada, the U.K., and Australia, indicates that 59% of law firms believe Gen AI should be used for legal work. Steve Assie, general manager for global large law firms at Thomson Reuters, said: “Law firm professionals and the law firms themselves are increasingly keen to make more use of Gen AI.” The report also reveals that 77% of legal professionals are using Gen AI for document review and summarisation, while only 20% are measuring the return on investment from their AI initiatives.
FIRMS
A&O Shearman's Trump work 'to exclude tariffs'
A&O Shearman has said it will not engage directly with the U.S. government or manage trade agreements as part of its $125m commitment to provide free services to the Trump administration. During a recent internal meeting, Senior Partner Khalid Garousha, Managing Partner Hervé Ekué, and U.S. Chair Adam Hakki clarified that the agreement excludes trade and other governmental work. They addressed concerns from junior lawyers regarding the implications of the deal, emphasizing that it is strictly limited in scope.

 
Law
EMPLOYMENT LAW
Federal judge rules for Catholic employers
U.S. District Judge Daniel Traynor has permanently blocked federal regulations that would have required over 9,000 Catholic employers to accommodate workers seeking abortions and fertility treatments. The Catholic Benefits Association and the Bismarck Diocese argued that these regulations violated their religious rights, stating that they “ran roughshod” over their beliefs. Traynor's decision follows a preliminary injunction issued last year, affirming that the Pregnant Workers Fairness Act infringed on federal laws protecting religious freedom. Attorney Martin Nussbaum expressed gratitude for the ruling, emphasizing the importance of protecting Catholic values against what he described as “immoral benefits” and speech codes imposed by federal administrations. The Catholic Benefits Association represents more than 9,000 employers and 164,000 employees enrolled in health plans.
LAWSUITS
NAACP takes on education funding cuts
The NAACP has filed a lawsuit against the U.S. Department of Education, aiming to halt its alleged illegal actions to cut funding for schools implementing diversity, equity, and inclusion (DEI) programs. The civil rights group criticized the Trump administration for targeting initiatives that promote "truthful, inclusive curricula" and provide equal educational opportunities for Black students. NAACP President Derrick Johnson said: "Children of color consistently attend segregated, chronically underfunded schools where they receive less educational opportunities and more discipline." The lawsuit, NAACP v U.S. Department of Education et al, highlights concerns over compliance with Title VI of the Civil Rights Act of 1964 and a recent Supreme Court ruling affecting race-conscious admissions. “As long as the documents remain in place, their broad and vague terms will continue to deter lawful activities by forcing schools and their students to steer clear of almost anything involving race, preventing them from both celebrating racial diversity and addressing racial inequalities,” said Allison Scharfstein, educational fellow with the NAACP Legal Defense Fund.
Unions' lawsuit over DOGE access to systems can move forward
In a ruling Wednesday, U.S. District Judge John Bates said he would not throw out a lawsuit from labor unions seeking to block a team from Elon Musk's Department of Government Efficiency (DOGE) accessing systems at the Labor Department. The unions contend that allowing DOGE to access the systems violates the federal Privacy Act because they contain medical and financial records of millions of Americans, and also say DOGE does not have the legal authority to direct the actions of congressionally created agencies such as the Department of Labor. The judge said those claims could move forward in court, although he dismissed some other arguments made by the unions, including that the U.S. Health and Human Services Department violated health care privacy laws by allowing DOGE access.
RISK
Canadian firms warn against U.S. travel
Executives from major Canadian institutions are advising employees to avoid traveling to the United States unless absolutely necessary due to rising concerns over privacy and border scrutiny. Vera Etches, CEO of the Children's Hospital of Eastern Ontario, emphasized the need for caution, highlighting “escalation of issues and volatility in the U.S.” Institutions including the Alberta Investment Management Corp. have restricted staff from visiting the U.S. for business meetings, while the Canadian Association of University Teachers recommends that academics refrain from travel, especially if they have criticized U.S. policies. The Canadian government has also issued warnings about U.S. border agents' rights to search electronic devices without cause. To mitigate risks, Etches suggested using “burner” phones, while Ontario's University of Waterloo is providing “clean” laptops for safer access to information.
APPOINTMENTS
Thompson Coburn adds litigation partners
Thompson Coburn has announced the addition of Adam Toosley and Laura Ellis Kugler as litigation partners. Toosley, based in Chicago, focuses on business litigation, representing lenders and contractors in various disputes. Kugler, who joins the mass tort litigation and product liability team in Dallas, has extensive experience in product and professional liability cases, having served as national coordinating counsel for defendants in asbestos and talc litigation.
Vinson & Elkins welcomes new partner
Alex Canizares has joined Vinson & Elkins as a partner in its litigation practice and co-head of the government contracts practice in Washington. He brings extensive experience in assisting government contractors with complex litigation, internal investigations, and enforcement actions. Canizares represents clients in False Claims Act and qui tam whistleblower actions, focusing on fraud allegations and government contract litigation. He previously worked at Perkins Coie.
INTERNATIONAL
Google faces $6.6bn U.K. class action lawsuit
Google is being sued in the U.K. for up to £5bn ($6.6bn) in damages over claims it shut out rivals in the internet search market and abused its dominance to overcharge businesses for advertisements. The claim, filed by competition law expert Or Brook, accuses Google of overcharging businesses for advertisements by restricting competition through preinstalled apps on Android devices and paying Apple to make its search engine the default on iPhones. A Google spokesperson said: “This is yet another speculative and opportunistic case – and we will argue against it vigorously. Consumers and advertisers use Google because it helpful, not because there are no alternatives.”

 

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