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Lacey v. State Farm General Insurance Co.

An AI-assisted discovery brief passed between two firms with fake or misquoted authority; even the revised filing remained defective.

$31,100 firm sanction
01

Case background

Material facts

Two firms circulated and filed a discovery and privilege brief containing nonexistent and misquoted authority without disclosing or adequately checking the AI-assisted work. The attempted correction still contained errors.
02

The decision

The court’s ruling

The court struck the briefs, denied discovery relief, and held the firms jointly and severally responsible for $31,100. The client was not sanctioned.

Why it matters

What the decision means

Shared drafting needs clear ownership. When a filing passes between firms, someone must be expressly responsible for checking every source in the final version.

Primary reading

Source