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My chambers is having fall college interns - a junior and a senior. What types of work should I assign college interns - what can they be helpful for? Or should they just really observe court?

Likely just observe? I'm not sure they have access to westlaw or if they'd really understand how to use it (not that it's rocket science or anything). You could also have them review things you've written just to see if they have grammar mistakes and they can ask you questions about them or something.

Ditto on observing. Occasionally, our career clerk (who taught at a local college) would design some assignments based on reading recent SCOTUS opinions to get a flavor for the law.

Agree with the recommendations to have them observe. But I'd try to get them involved with other things too, especially if the calendar isn't packed. One thing I'd suggest is if there are trials/hearings coming up have them help with prep/administrative stuff to the extent you can (e.g., have them help put together a trial/hearing binder, prep sentencing materials for the judge).

You could also come up with assignments that involve reviewing filings rather than doing legal research on Westlaw. Say you're working on a summary judgment motion and a party says X fact is undisputed and here's where X is established in the record. Have them look at the record and see if that's true. That takes more work than observation and administrative tasks, but might be more interesting.