ChatGPT just cost this lawyer $10,000 for making up legal citations

A California lawyer faces a $10,000 fine after using ChatGPT to prepare an appeal. The tool did not create real citations for the case, but the lawyer did not identify them. The Judges, however, did spot them, and the lawyer had to pay the huge fine.

According to the California Second District Court of Appeals, the document had 21 fake citations of 23. The judges did a thorough check of all the citations themselves.

They warn attorneys to avoid inserting sources they fail to verify in legal documents. This is the heaviest fine yet on a lawyer by a California court for AI misuse.

Courts across the United States report more lawyers relying on AI for research. Many end up citing fake cases. California judges now face pressure to set strict rules.

By December, they must either ban AI or write clear policies for its use. The state bar also reviews its code of conduct to address AI misuse.

According to the lawyer, Amir Mostafavi, after using AI to clean up his writeup, he did not double check the citations. He claims that his intention is to clean the writeup and nothing more.

Unfortunately, ChatGPT did more than clean up and he will now pay a huge fine for it. He claims that he didnt know ChatGPT can invent cases.

He believes AI is more like a shift from law books to online databases but he warns his colleagues to use it carefully.

This case does not stand alone. Earlier this year, a federal judge in California fined two law firms $31,000 for relying on fake AI research. Reports track more than 600 similar incidents in the United States. California alone counts 52 cases. The issue grows larger every month.

Experts say many lawyers know little about how AI works. They point out the risk of “hallucinations,” when AI creates false but believable text.

They suggest required training for lawyers who misuse AI. They also warn that judges might cite fake cases in rulings by error. This would spread the problem deeper into the legal system.

The fine sends a strong signal to lawyers everywhere. AI can save time, but it cannot replace duty. Lawyers must double-check their sources and protect their clients’ trust. Those who fail risk steep fines. Of course, there is also the result of damage to name and other work-related results.