On Sept. 12, 2025, the California Court of Appeal issued California’s first published opinion addressing AI “hallucinations” in court filings. In Noland v. Land of the Free, L.P., the court affirmed summary judgment for the respondent and sanctioned appellant’s counsel $10,000 for filing appellate briefs “replete” with fabricated quotations and citations generated by AI tools. The court held that relying on nonexistent authorities violates duties of candor and competence, and renders an appeal frivolous under California Rules of Court, rule 8.204(a)(1)(B). The court also ordered service of the opinion on the client and referred appellant’s counsel to the State Bar of California. The court declined to award attorneys’ fees, costs or sanctions payable to respondent, in part because respondent’s counsel did not alert the court to the fabricated citations and appeared unaware of them until the court issued an order to show cause.
The court published the opinion “as a warning,” emphasizing that attorneys must personally read and verify every cited authority. The decision underscores a growing trend of courts imposing sanctions for filed briefs that contain fabricated, AI-generated legal authority. Many courts also are adopting protocols in standing orders governing AI disclosure and use. Courts address AI misuse in various ways. With the proliferation of AI in the legal field, counsel should expect an increased willingness by courts to issue sanctions for filings that rely on unverified AI outputs, with consequences that may include monetary penalties, state bar discipline, reputational harm and case dismissals.
To comply with the California Rules of Court and the California Rules of Professional Conduct, and to avoid the risks and consequences of AI misuse, counsel should:
- Personally review and verify every cited authority, or AI-generated work product;
- Promptly notify the court and opposing counsel if fabricated authorities are discovered; and
- Disclose and manage any use of generative AI in cases when required by the court.