A U.S. federal appeals court has fined two lawyers $15,000 each for submitting legal filings riddled with fake case citations attributing to “AI Hallucinations”, terming it as a blot on the bar. Additionally, the court has warned that legal appeals containing fake case citations can be dismissed as frivolous.
The case involved attorneys Van Irion and Russ Egli, who represented clients in a dispute against the city of Athens at the U.S. Court of Appeals for the Sixth Circuit.
The court said their filings included misleading or non-existent legal citations, which damaged the credibility of the legal profession. As a result, both lawyers were ordered to pay $15,000 each as a penalty and reimburse the city for its legal expenses.
The ruling by a three-judge panel of the U.S. Court of Appeals for the Sixth Circuit marks one of the most direct judicial rebukes yet of AI misuse in American courtrooms, and sets a clear precedent: using AI is not an excuse.
In its decision, the court said the lawyers “sullied the reputation of our bar,” stressing that attorneys must ensure the accuracy of everything they submit, even if they use AI tools. While AI is not banned in legal work, lawyers are still responsible for checking facts and citations.
The judges—John Bush, Jane Branstetter Stranch, and Eric Murphy—also criticized the attorneys for refusing to explain how their documents were prepared. It was quite surprising when instead of cooperating, the lawyers accused the court of unfair treatment.
Meanwhile, Larry Eaton, mayor of Athens, welcomed the ruling, calling it reassuring. The decision also upheld the dismissal of related lawsuits tied to a 2022 fireworks event.
The decision comes in the wake of increasing instances of lawyers using AI for research as well as preparation of litigation documents where AI tool has more often than not indulged in hallucinations and come up with fake cases. Recently, a Singapore Court had fined two lawyers $5000 each for submitting fake cases using AI.
Also Read: “Do Not Become An Artificial Lawyer”: Judges Come Down Hard on AI in Courts
