TLDR: A lawyer has been fined $5,500 and ordered to attend AI ethics training after being caught using ChatGPT to create non-existent caselaw in a bankruptcy case. The judge emphasized the critical need for attorneys to verify information from generative AI tools.
A recent ruling by Judge Michael Slade has brought to light the significant risks associated with integrating generative artificial intelligence into legal practice without proper oversight. Attorney Thomas Nield, representing a debtor in a bankruptcy case, and his firm, Semrad Law Firm, were sanctioned and fined $5,500 for submitting legal arguments that cited non-existent caselaw generated by ChatGPT. The judge also mandated that Nield attend AI ethics training.
The incident unfolded during a bankruptcy case that began in 2024. Nield and his firm filed a Chapter 13 repayment plan, and in their response to a challenge regarding the plan’s feasibility, they cited four specific cases: In re Montoya, In re Coleman, In re Russell, and In re Jager. Judge Slade, upon reviewing these citations, found them to be entirely fabricated by the AI tool. He stated, ‘Any lawyer unaware that using generative AI platforms to do legal research is playing with fire is living in a cloud.’
Nield admitted to using ChatGPT for legal research, claiming it was his first time doing so, and expressed remorse. He stated that he ‘assumed that an AI program would not fabricate quotes entirely’ and had not thoroughly reviewed the data provided by the chatbot. He has since promised the court that he will ‘never again use an AI program to do legal research without checking every element of the AI’s work product’ and has reported himself to the Illinois Attorney Registration and Disciplinary Commission.
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Judge Slade viewed the $5,500 fine as a ‘modest sanction,’ issuing a warning that future similar infractions would likely result in more significant penalties. This case underscores a growing concern within the legal community regarding the responsible use of AI. While AI tools can offer assistance, attorneys retain a fundamental ‘gatekeeping role’ to ensure the accuracy and veracity of all filings submitted to the court. This incident serves as a stark reminder of the ethical responsibilities lawyers bear in the age of artificial intelligence.
