Thursday 22 June 2023

Schwartz and LoDuca Penalized $5000 for Employing Chat GPT in Court Proceedings

**Personal Injury Lawyers Fined for Using Fake AI-Generated Citations in Court**

Two personal injury lawyers, Steven A. Schwartz and Peter LoDuca, have been fined $5,000 for their unethical use of fake cases and citations generated by ChatGPT, an artificial intelligence program, in court documents. The lawyers then proceeded to lie about their actions in open court. The Manhattan judge who imposed the fine left it up to Schwartz and LoDuca to decide whether they should personally apologize to the judges for their deceitful behavior.

Schwartz admitted to using ChatGPT to supplement his legal research while drafting the documents. On the other hand, LoDuca, who was the attorney of record in the case, signed a brief filed with the court that contained citations to non-existent cases. Schwartz, being unqualified to practice in federal court, did not sign the filing. However, during the proceedings, Schwartz expressed his skepticism about the reliability of AI-generated caselaw and admitted to turning to ChatGPT once again to verify the authenticity of the case in question.

U.S. District Judge Kevin Castel, appointed by George W. Bush, highlighted the potential harms that arise from the submission of fake opinions. These include wasting the opposing party’s time and money in exposing the deception, taking valuable time away from the court’s other important endeavors, depriving the client of arguments based on authentic judicial precedents, damaging the reputation of judges falsely invoked as authors of bogus opinions, fostering cynicism about the legal profession and the American judicial system, and encouraging future litigants to challenge judicial rulings inappropriately.

Judge Castel found that the lawyers had not acted innocently in this case. According to his findings, they not only doubled down on the fake cases they cited but only began revealing the truth after sanctions were already on the table. Furthermore, LoDuca submitted a false document stating that he would be on vacation and therefore unable to promptly respond regarding the citations’ veracity. Castel later revealed that LoDuca admitted his false statement about the vacation was made to cover for Schwartz, who was out of the office and needed more time to prepare for the upcoming hearing related to the fake citations.

Castel also examined the cases generated by ChatGPT for the lawyers and found significant flaws in the legal analysis and reasoning. According to the judge, one of the cases contained gibberish and displayed stylistic flaws that are not typically present in appellate decisions. Moreover, the judge called out Schwartz for attempting to downplay his reliance on ChatGPT as a supplement to his legal research when, in reality, it was his only substantive source of arguments.

In a series of screenshots submitted as evidence, Schwartz was seen questioning ChatGPT about the authenticity of the cases it had provided. Despite his skepticism, ChatGPT assured Schwartz that the authorities it had supplied were real and could be found through reputable legal research platforms.

Judge Castel concluded that the lawyers’ conduct was in “bad faith” and imposed sanctions under Rule 11. As part of the sanctions, Schwartz and LoDuca must pay $5,000 to the court for their wrongdoing. Additionally, they are required to inform their clients and any judges whose names were falsely invoked in the filings about the situation. Castel, however, decided against ordering an apology, believing that a compelled apology lacks sincerity and should be left to the lawyers’ discretion.

To read the full order on sanctions, click here.

**Editor Notes: An AI Ethics Wake-Up Call**

The case of the personal injury lawyers fined for using fake AI-generated citations highlights the need for strong ethical guidelines and responsible usage of artificial intelligence in the legal profession. While AI technologies like ChatGPT can be valuable tools for assisting legal research, they should never replace the careful scrutiny, verification, and expertise that legal professionals bring to their work.

Moreover, this incident underscores the importance of maintaining the integrity of the legal system and the importance of accountability for attorneys. By imposing sanctions on the lawyers involved, U.S. District Judge Kevin Castel sends a message that unethical behavior will not be tolerated, and that lawyers have a duty to act in good faith and uphold the principles of justice.

As AI continues to play an increasingly significant role in various industries, it is vital to establish guidelines, regulations, and oversight mechanisms to ensure responsible and transparent usage. This will help prevent future instances of misuse and maintain public trust in AI technology.

At GPT News Room, we are committed to covering the latest developments in AI, ethics, and industry trends. Visit our website to stay informed about these important topics and gain valuable insights. Together, we can shape a future where AI is harnessed ethically and responsibly for the benefit of society.

**[Editorial Note: For more news and articles on AI ethics and industry trends, visit GPT News Room.](https://ift.tt/uIaTElS

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