Amtrust North America o/b/o Justin McGinness v. Liberty Mutual Insurance Company
SC New Jersey · Mar 27, 2026
- Jurisdiction
- state
- Court
- SC New Jersey
- Record ID
- amtrust-north-america-obo-justin-mcginness-v-liberty-mutual-insurance-company-20
- Observed outcome
- The court affirmed the dismissal of the complaint (remanded for modification to 'without prejudice') and imposed a $1,000 personal sanction on plaintiff's counsel.
- Known monetary consequence
- $1,000
Why this matter warrants attention
The court imposed a $1,000 personal monetary sanction on plaintiff's counsel for citing four non-existent cases in an appellate brief and failing to correct the record after being alerted to the errors by opposing counsel, in violation of the duty of candor.
The court reasoned that the citation of non-existent cases violated RPC 3.3 (candor to the tribunal) and Rule 2:9-9. The court emphasized that while AI use is not prohibited, counsel remains responsible for the validity of submissions. The sanction was specifically warranted because counsel failed to retract the hallucinations even after opposing counsel identified them, demonstrating an 'utter indifference' to professional standards and wasting judicial resources.
Four fabricated NJ cites drew $9K plus recommended CLE — subrogation briefs now warrant supervisor sign-off.
Failure modes and consequences
- Fake Citations
- Trial
- Monetary
- AI attribution
- Implied
- Recorded tool
- unspecified
- Known monetary consequence
- $1,000
- Procedural posture
- Appellate review of a trial court's dismissal of a declaratory judgment action with prejudice.
Damien Charlotin case archive
Publisher document archive. The recorded document is hosted in the upstream publisher archive.
Open underlying sourceA recorded source link is not a substitute for checking the underlying order, filing, opinion, or disciplinary record.
What this record does—and does not—establish
The court identified the citations as hallmarks of generative AI but did not name a specific tool.
The record summarizes the outcome described in the linked public source. The recorded document is hosted in the upstream publisher archive. This page is not a substitute for the complete docket, subsequent history, or jurisdiction-specific advice.
Latest evidence review: Primary Document Verified (high confidence).
Controls suggested by the public record
- Implement mandatory verification protocols for all case law citations, regardless of the research tool used.
- Establish a formal procedure for counsel to retract or correct filings immediately upon discovery of inaccurate information.
- Ensure that all appellate briefs undergo a secondary review by a qualified supervisor to verify the existence and accuracy of cited authorities.
- Train legal staff on the specific risks of AI-generated hallucinations and the requirements of the New Jersey Supreme Court's Preliminary AI Guidelines.