Actual Intelligence Must Be Used When Relying on AI, Judge Says

An Indiana attorney who admitted to using generative AI tools to draft court filings that contained fabricated case citations should be fined $15,000, a federal magistrate judge recommended.

Rafael Ramirez failed to make any effort to verify the cases cited in the AI-generated text, and his “professed ignorance of the propensity of the AI tools he was using to ‘hallucinate’ citations” warrants the fine, Magistrate Judge Mark J. Dinsmore wrote in a Feb. 21 report and recommendation for the US District Court for the Southern District of Indiana.

Although lawyers shouldn’t be banned from using AI, “the use of artificial intelligence must be accompanied by the application of actual intelligence in its execution,” Dinsmore also said.

Ramirez, who’s representing HooserVac LLC in a lawsuit over its retirement fund, included case citations in three separate briefs that the court was unable to locate. Dinsmore ordered Ramirez to show cause why he shouldn’t be sanctioned for the errors.

Ramirez admitted during a hearing that he used generative AI programs to draft the briefs that contained the false citations. Ramirez said the text excerpts generated by the AI tool appeared credible and that he wasn’t aware it could create fictitious citations, so he didn’t do any further research or attempt to verify the cases. Ramirez said he’s since taken continuing legal education courses on the use of AI in law, and continues to use AI programs, the report said.

But confirming a case citation is a basic expectation of a practicing attorney, Dinsmore said. Ramirez’s “failure to comply with that most basic of requirements” makes his conduct “particularly sanctionable,” the magistrate said. Dinsmore recommended Ramirez be personally fined $5,000 for each of the three filings that contained false citations, totaling $15,000.

Dinsmore said that since Ramirez failed to provide competent representation and made several false statements to the court, he was also being referred to the chief judge for any further disciplinary action under the Indiana Rules of Professional Conduct. Dinsmore also ordered Ramirez to certify he provided a copy of the order to the CEO of HoosierVac within seven days.

Ramirez Law Office PC and Mattingly Burke Cohen & Biederman LLP represent Hoosiervac.

The case is Mid Cent. Operating Eng’r Health and Welfare Fund v. Hoosiervac LLC, S.D. Ind., No. 2:24-cv-00326, 2/21/25.