AI hallucinated case law in court filings in L.A. County fire dispute - Los Angeles Times
State Farm attorneys apologized for citing fake AI-generated case law in a fire insurance dispute.Summary
Attorneys for State Farm, representing the insurer in a dispute over a fire-damaged Carson home, submitted court filings containing multiple nonexistent case citations generated by an AI tool called Irys. The fabricated precedents were used to support arguments regarding claim adjudication, hearsay, and coverage responsibility. After opposing counsel Michael Shaolian identified the errors, attorney Jacquelene Robinson of Musick, Peeler & Garrett filed a motion apologizing for the "serious lapse in professional judgment" and acknowledging the citations were AI hallucinations.
State Farm stated it is working to implement safeguards to prevent future errors and expects its external counsel to adhere to the highest ethical standards. The incident occurs amid broader scrutiny of State Farm's handling of claims from the January 2025 wildfires, with the California Department of Insurance considering a temporary ban on the insurer for allegedly delaying and underpaying policyholders.
(Source：Los Angeles Times)