On Monday, February 24, 2025, a judge sanctioned three lawyers for citing fake cases generated using artificial intelligence in a personal injury lawsuit against Walmart.
Rudwin Ayala, T. Michael Morgan, and Taly Goody represent plaintiffs suing Walmart. The lawsuit concerns claims that Walmart sold a defective hoverboard that caught fire and burned down the plaintiffs’ home. On January 22, 2025, the three attorneys filed Motions in Limine citing nine cases, eight of which do not exist. Ayala drafted the motions under the direction of his supervisor, Morgan. Other than suggesting Ayala exclude a term used during a deposition, Morgan was not involved in the drafting of the motions. Goody, local counsel in the matter, was entirely uninvolved in drafting the motions. Morgan and Goody were not provided a copy of the motions prior to filing; however, all three attorneys e-signed the filed motions before filing.
Ayala utilized “MX2.law” to add case law to his motions. MX2.law is “an in-house database launched by Mr. Ayala and Mr. Morgan’s firm.” Ayala instructed the database to: (1) “add to this Motion in Limine Federal Case law from Wyoming setting forth requirements for motions in limine;” (2) “add more case law regarding motions in limine;” and (3) “[a]dd a paragraph to this motion in limine that evidence or commentary regarding an improperly discarded cigarette starting the fire must be precluded. . . Include case law.”
Ayala told the court “that this was his first time ever using AI in such a way.” Judge Kelly H. Rankin determined that these search inquiries on MX2.law “apparently generated the fake cases.” Ayala did not verify the accuracy of these cases before including the cases in the motions. “Ayala admits that the cases are non-existent and his reliance on the AI platform was misplaced.” After Judge Rankin issued an Order to Show Cause, the three attorneys withdrew the motions, were honest about the use of AI, payed opposing counsels’ fees for defending the motions, and implemented “policies, safeguards, and training to prevent another occurrence in the future.”
Judge Rankin revoked Ayala’s pro hac vice status and imposed a $3,000 fine. As such, Ayala was removed as counsel of record. “[T]he Court finds this sanction is the least severe punishment to deter future misconduct.” Morgan’s pro hac vice admission was not revoked. However, Judge Rankin imposed a $1,000 fine on Morgan for failing to adhere to his obligations under Federal Rules of Civil Procedure Rule 11(b). Goody was similarly fined $1,000 for her failure to comply with Rule 11(b).
Judge Rankin noted that “[w]hen done right, AI can be incredibly beneficial for attorneys and the public. . . Overall, technological advances have greatly accelerated our world, and AI will likely be no exception. . . As attorneys transition to the world of AI, the duty to check their sources and make a reasonable inquiry into existing law remains unchanged.”
Additional Reading
Judge fines lawyers in Walmart lawsuit over fake, AI-generated cases, Reuters (February 25, 2025)
Wadsworth v. Walmart Inc et al (Case No. 2:2023cv00118)
Order on Sanctions in Wadsworth v. Walmart Inc et al
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