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On January 20, a lawyer told a federal court in Illinois that he had put corrective measures in place after AI gave him fake citations. On January 27 he filed a motion carrying fake citations he had already filed once, in Wisconsin, three months earlier. Whatever he fixed, it wasn't the template.

THE LEAD PLAY

The Fix Never Reached the Template

Editorial illustration of a master document and a fan of identical copies that all carry the same red flaw, representing a faulty citation reproduced by a template.

On January 14, a judge in the Northern District of Illinois found at least two hallucinated cases in a brief David Reyes had filed in Pittman v. Hazel & Olive. Six days later Reyes answered. He put the problem down to "AI usage and insufficient cite checking" and told the court he had "implemented corrective measures to prevent a recurrence."

Seven days after that, he filed a motion for default judgment in Cole v. Hobby Town Unlimited, an ADA Title III case in the Central District of Illinois. Judge Sara Darrow's September 2 sanctions order says the motion "contained multiple AI-hallucinated cases," and it traces where they came from. In October 2025, Reyes "filed a nearly identical motion for default judgment in Hippe which included the same faulty citations." Hippe was in the Eastern District of Wisconsin. His explanation to the Cole court was that he had "relied in part on prior work product developed with the help of AI in similar ADA Title III matters, as a drafting aid and template."

The sanction was a $1,000 fine and an order to send the opinion to the Illinois Attorney Registration and Disciplinary Commission. The Wisconsin court had passed on sanctions in July because he withdrew his fee request.

Put the January 20 promise next to the January 27 filing. The corrective measures, whatever they were, lived on the checking side of the practice. The bad citations were sitting on the reuse side, in a document built to be copied. A go-by carries its authorities into every filing drafted from it, and each use makes it look more trustworthy, because paper that has been filed before reads like paper somebody already checked.

The motion type matters too. Default judgment motions are about as templated as litigation paper gets, and Hobby Town, according to the order, "has never appeared." Nobody on the other side was ever going to pull the cases. The only other reader was the judge, and the judge did.

The cheap moment to check a go-by is the day it becomes one. A check at that moment also catches the authority that was good law when the template was built and has since been overruled, which is a problem your form bank had long before anyone opened ChatGPT.

The Play this week: Make the template the thing that gets verified, and make every citation fix travel back to its source.

Start with the last citation problem your firm caught, whether a court flagged it or a partner did. Find the document it was copied from, correct it there, then run a full-text search in your document management system for the bad citation and fix every other document that contains it.

Next, ask the people in your highest-volume practice where they actually draft from: the forms library, a shared drive, personal folders, the last one we filed. Anything in those places created or modified since your first AI drafting tool went live gets its authorities read once against the source, with the reviewer's name and the date recorded on the document. From then on, nothing gets saved as a go-by without that stamp.

SECOND CHAIR

The Author Field Said CoCounsel

Editorial illustration of a document with a red tag tied to its corner under a magnifying glass, representing file metadata that reveals how a filing was drafted.

In Sea Swivel Inc. v. Shuttleslide LLC, Magistrate Judge Yeney Hernandez of the Southern District of Florida struck four affirmative defenses on September 2 and recast three more as denials. Along the way she noted that Shuttleslide had cited Affordable Aerial Photography v. Abdelsayed on timeliness, a question that case did not decide. Then: "It did not escape the Court's notice that Shuttleslide's Response is titled 'CoCounsel Skill Results.'" A footnote adds that the document's metadata "lists 'CoCounsel' in the 'Author' field."

The court declined, "at this juncture," to "draw a causal link between this apparent use of AI and counsel's mistaken reliance" on the case, and settled for a warning: "while AI has no Rule 11 obligations, the attorney who relies on it does."

The read: California's SB 574, now on the Governor's desk, would require lawyers who use generative AI to disclose that use to the court "for all documents submitted to the court." In Florida, the file properties made that disclosure without anyone deciding to. Open the properties panel on the last five PDFs your firm filed, see what the Author field says, and find out whether anything between the drafting tool and the e-filing portal clears it.

Group Effort, or Personally Verified

Editorial illustration of hands passing a document in a relay toward a pen at a red signature line, representing shared citation checking set against one signer's personal duty.

The D.C. Court of Appeals struck a brief in Douglas v. Deutsche Bank National Trust Co. on September 3 over four nonexistent cases, and referred the matter to the Office of Disciplinary Counsel. The attorney had used "Google's generative artificial intelligence search tool" to find authority. The appellant asked the court to register incredulity that "a competent law firm representing one of the largest financial institution[s] in the world could make" the mistake.

Senior Judge Stephen Glickman's concurrence is the part to keep. Guarding against hallucinated citations, he wrote, "can be a group effort that does not require every signatory to personally cite check." The vetting "may be done cost-effectively by a trained paralegal." Firms should be "adopting clear policies governing such use and providing for discipline when appropriate; and requiring attorneys to confirm that they have complied with those policies." And: "If training and oversight have been neglected, supervisory lawyers may be accountable as well."

The read: SB 574's amendment to California's Code of Civil Procedure says a filing "shall not contain any citations that an attorney responsible for submitting the pleading has not personally verified." A paralegal cite-check built to the D.C. concurrence does not obviously satisfy the California sentence. If your firm files in both places on one workflow, put the two quotes side by side in front of whoever owns that workflow.

ChatGPT's Off Switch Only Works Forward

Editorial illustration of a switch turned off beside an open doorway with a red folder still visible, representing a sharing setting that stops new shares but leaves existing ones in place.

OpenAI's September 9 release notes for ChatGPT Enterprise added Library sharing. Members can "Invite recipients and assign Viewer or Editor access" to files and folders, or "Make content available to everyone in your workspace." The same entry describes the admin control: "Turning off Library sharing prevents new shares and permission changes. Existing shared content remains accessible, and members can still access content shared with them." Six days earlier, eligible Enterprise workspaces got the option to let Site owners "share live Sites with named external viewers."

The read: Your ethical walls are enforced in the document management system, and a file uploaded to a ChatGPT Library is a copy sitting outside it. If your firm runs ChatGPT Enterprise, settle the Library sharing setting before the first associate shares a folder with the whole workspace, because switching it off afterward leaves that share where it is.

STILL WATCHING

  • Thomson Reuters v. ROSS Intelligence, No. 25-2153, argued in the Third Circuit on June 11. Ninety-two days, no opinion. On September 1 the United States filed a statement of interest in the OpenAI copyright MDL arguing that copying text to train an LLM is transformative, "spectacularly so." ROSS sent it to the Third Circuit in a Rule 28(j) letter on September 4. Thomson Reuters has since responded.

  • California SB 574 passed on August 31, 75-0 in the Assembly with no votes against on Senate concurrence, and was presented to the Governor on September 9. Under the state constitution, a bill in that posture that is not returned by September 30 becomes law without a signature. The enrolled text still says it in thirteen words: "An attorney shall not delegate the practice of law to generative artificial intelligence."

  • The California rules amendments to RPC 1.1, 1.4, 1.6, 3.3, 5.1, and 5.3. One hundred thirty days since public comment closed on May 4. The State Bar's page for the proposal shows nothing after the comment deadline.

  • The Copilot for Word prompt injection. One hundred eighty-nine days since Hakon Maloy reported it, forty-five since he published it. Microsoft's September 8 release carried 972 CVEs. The Copilot entries in Zero Day Initiative's review of that release cover Copilot Studio, GitHub Copilot, and the Copilot assistant in SQL Server Management Studio. None is identified as Copilot for Word.

QUICK HITS

  • Harvey raised $550 million at a $15.5 billion valuation on September 9, co-led by Diffusion and Lightspeed, and bought Guardrails AI the same day. Winston Weinberg on the acquisition: "Every firm we work with asks the same question before they let an agent near real client work: how do you know what it will do?"

  • BakerHostetler launched Practice Intelligence Center, an internal platform that pairs the firm's own matter intelligence with AI legal research from Clio's Vincent, per Clio's August 31 release. No user count, cost, or build details were disclosed.

  • Filevine added a citator and hallucination checker to LOIS on September 1. It tested 68 federal filings that courts had already sanctioned and says it "checked 2,073 citations and confirmed 174 severe errors the filing attorneys themselves had missed." Filevine also says LOIS caught 14 "silent" negative treatments that KeyCite and Shepard's did not. Filevine ran both tests itself.

  • Anthropic announced Enterprise Frontier Safeguards on September 1, letting customers keep misuse-monitoring data in their own cloud storage, with rollout starting later this fall. In the meantime, eligible customers get zero data retention on Fable 5 and Fable 5.1. The announcement does not say who is eligible.

  • India's Supreme Court set aside a ₹425.27 crore customs penalty on September 2 because the adjudicating officer had relied on AI-fabricated precedents, and sent the case to a different officer. Justices Dipankar Datta and Sheel Nagu: "AI may well serve as training wheels but entrusting it with the pilot's seat would be both imprudent and dangerous."

Three federal courts in two states have now looked at David Reyes's citations. The third one fined him $1,000.

See you in the next one.