New Jersey Attorney Fined $3,000 for Submitting AI-Generated Fake Case Law

Sukjin Henry Cho, an attorney in New Jersey, was fined $3,000 by a federal judge for submitting artificial intelligence-generated case law in court. This occurrence raises worries about AI usage in court proceedings and warns legal experts nationwide.
On September 18, Magistrate Judge José R. Almonte found that Cho had used fictitious legal citations in a motion to consolidate cases involving his client, OTG New York, Inc., and Ottogi America, Inc., over a contract dispute over the exclusive East Coast distribution of a Korean food brand. Cho admitted that AI tools created the case law references and that he did not verify them before submission.
Judge Almonte stressed that attorneys must use AI in legal research responsibly. He warned that AI can develop legal ideas that look to be judicial decisions and are correctly cited, yet these instances may not exist. The judge warned that using AI without control can result in sanctions and professional reputation damage.
AI in legal proceedings is under closer scrutiny after Cho was fined. The rising frequency of court filings using AI-generated, non-existent references has alarmed legal professionals. In several jurisdictions, AI technologies like ChatGPT have been chastised and fined for “hallucinations”.
The court recognized Cho’s quick admission of the error and his promise to tighten internal procedures to prevent future errors. However, the judge stressed that contrition or post-factual corrections cannot excuse AI-generated content verification incompetence.
This verdict warns legal professionals about the risks of using AI tools without verification. AI can aid legal research, but attorneys must uphold their professional duty by verifying court files.
As AI becomes more prevalent in different areas, including law, regulatory organizations and legal associations must develop clear norms and ethical standards for its use. Attorneys using AI must be cautious and diligent to maintain the legal profession’s ethics.
Sources
Bloomberg Law
Winsome Marketing
Law360
The Verge