When confronted with a problem like “your search engine imagined a case and cited it”, the next step is to wonder what else it might be making up, not to just quickly slap a bit of tape over the obvious immediate problem and declare everything to be great.
That is why I called it a great start and not a finished product. I image there are a lot of legal cases to sift through and it is a lawyers job to at least keep track of the imporant ones (those which sets precedent), but knowing that there are multiple "lesser" rulings in your favour could be useful. And having a search enging that can find those based on a description of your current case? Not a bad idea to me.
The other thing to be concerned about is how lazy and credulous your legal team are that they cannot be bothered to verify anything. That requires a significant improvement in professional ethics, which isn’t something that is really amenable to technological fixes.
I can only agree here.