Scenario Library / Hallucination liability
Hallucination liability

Lawyers sanctioned after ChatGPT invents case citations

Two New York lawyers filed a brief in Mata v. Avianca citing cases that ChatGPT had invented, and stood by them when the court questioned them. A federal judge imposed a $5,000 joint sanction, opening the wave of AI-citation cases.

Legal Services 2023 Verified in a source

Insurance products that may respond

Lawyers professional liability

Why it matters for insurance

Sanctions may be uninsurable; defense costs, disciplinary proceedings and client malpractice claims are the coverable exposure.

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This is an educational research summary built from public information. Allegations in pending cases are unproven, and the insurance notes above are for discussion, not coverage advice. Whether any policy responds depends on its specific wording, exclusions, endorsements, the facts, and applicable law.

Reviewed by Andrei Craciunescu, CA Licensed Insurance Broker #4467994