United StatesProfessional services2025K&L Gates and Ellis George
Supplemental brief built on AI-drafted research (Lacey v State Farm)
Special master orders two law firms to pay $31,100 over a brief with bogus AI citations and strikes the brief
Problem
A ten-page supplemental brief in an insurance dispute had about nine wrong citations out of 27, and at least two cases did not exist. When the special master flagged them, the firms filed a revised brief that still contained errors.
Approach
Special Master Michael Wilner sanctioned K&L Gates and Ellis George jointly. They were ordered to pay about $26,100 in special master fees and $5,000 toward the defense's costs. The order says the lead lawyer used AI tools for an outline that K&L Gates then used without a cite check.
Results
Takeaway
The larger firm was sanctioned along with the smaller one because it filed work it had not checked. Re-filing a corrected brief that still has errors made the order harsher.
Categories
- Size
- Large enterprise
- Industry
- Professional services
- Business function
- Finance, risk and legalInternal work and knowledge management
- Innovation type
- Process innovation
- AI technology
- Generative AI
- Adoption
- Off-the-shelf tool or platform
- Evidence
- Regulator, audit or court
Sources
Source summaries
The special master ordered the firms to pay about $26,100 in fees and $5,000 toward defense costs over the AI-drafted brief. About nine of its 27 citations were wrong, including at least two non-existent cases.
Full details are in the original sources.