Smith v. Farwell

Outcome

Notes

AI UseIn a wrongful death case, plaintiff's counsel filed four memoranda opposing motions to dismiss. The drafting was done by junior staff (an associate and two recent law school graduates not yet admitted to the bar) who used an unidentified AI system to locate supporting authorities. The supervising attorney signed the filings after reviewing them for style and grammar, but admittedly did not check the accuracy of the citations and was unaware AI had been used.Hallucination DetailsJudge Brian A. Davis noticed citations "seemed amiss" and, after investigation, could not locate three cases cited in the memoranda. These were fictitious federal and state case citations.Ruling/SanctionAfter being questioned, the supervising attorney promptly investigated, admitted the citations were fake and AI-generated, expressed sincere contrition, and explained his lack of familiarity with AI risks. Despite accepting the attorney's candor and lack of intent to mislead, Judge Davis imposed a $2,000 monetary sanction on the supervising counsel, payable to the court.Key Judicial ReasoningThe court found that sanctions were warranted because counsel failed to take "basic, necessary precautions" (i.e., verifying citations) before filing. While the sanction was deemed "mild" due to the attorney's candor and unfamiliarity with AI (distinguishing it from Mata's bad faith finding), the court issued a strong warning that a defense based on ignorance "will be less credible, and likely less successful, as the dangers associated with the use of Generative AI systems become more widely known". The case underscores the supervisory responsibilities of senior attorneys.