US Judge Kelly Rankin Fines Lawyers Rudwin Ayala, T Michael Morgan, Taly Goody Over Fake AI-Created Cases
US Judge Kelly Rankin Fines Lawyers Rudwin Ayala, T Michael Morgan, Taly Goody Over Fake AI-Created Cases
Emphasizes that in the profession, the sources must be verified
District Judge Kelly Rankin in Wyoming, United States, has imposed $5,000 on three lawyers for filing fake artificial intelligence (Al)-generated cases against Walmart.
Emphasizing that lawyers verify their sources, he highlighted the risks posed by generative Al in legal documents.
Judge Rankin held, "As attorneys transition to the world of AI, the duty to check their sources and make a reasonable inquiry into existing law remains unchanged.”
While Rudwin Ayala and T Michael Morgan (son of founder John Morgan) are from Morgan & Morgan, the national law firm, Taly Goody represents Goody Law Group, a local firm.
For the past two years, judges across the country have questioned or disciplined a growing number of lawyers for including Al-generated cases and quotations in court documents. Examples have cropped up in at least nine lawsuits since chatbots like ChatGPT ushered in the Al era, highlighting a new litigation risk.
Ayala has to pay a $3,000 fine. He apologized and said he used an internal AI program that ‘hallucinated’ the cases, which he incorporated.
The judge removed Ayala from the lawsuit and fined $1,000 each on Morgan and Goody for not ensuring the accuracy of the draft by Ayala.
However, Goody said she did not receive the filing to review before it was submitted and had earlier given her explanation to the court.
The judge observed that the lawyers ‘had been on notice’ about generative Al's ability to hallucinate cases.
He said that Ayala's ‘honesty and candor’ and steps taken by Morgan & Morgan to tackle future incidents led to a less severe punishment.
"When done right, AI can be incredibly beneficial for attorneys and the public. The instant case is the latest reminder to not blindly rely on Al platforms' citations, regardless of the profession," he added.
Meanwhile, Walmart denied the allegations in the lawsuit, which accuses the retailer of selling a defective hoverboard toy that allegedly caught fire and burned down the plaintiffs' house. The case will go to trial next month.
In a separate recent case, a federal magistrate judge in Indiana recommended a $15,000 fine for a lawyer who submitted three briefs on non-existent case citations generated by AI and referred him to the chief judge for possible additional discipline.
