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Courts on AI / Fabricated or misquoted citations

EFD USA, INC., et al. v. Band Pro Film and Digital, Inc., et al.

California Court of Appeal · State appellate courts · CA · · 2026 WL 457265 · No. No. BC661332) · opinion

California Court of Appeal on 2026-02-18 in EFD USA, INC., et al. v. Band Pro Film and Digital, Inc., et al. found counsel's reply brief contained six citation defects, including Leaf v. City, involving nonexistent authorities, fabricated or misattributed quotations. The court ordered counsel to pay $900 for the defective authorities and complete corrective CLE.

Disposition
The court ordered counsel to pay $900 for the defective authorities and complete corrective CLE.
Recorded conduct
Counsel's reply brief contained six citation defects, including Leaf v. City, involving nonexistent authorities, fabricated or misattributed quotations. — outcome: fine; actor: lawyer; $900
Canonical record
Incident tracker entry — verified outcome, regulator disposition and related rules

What the court wrote

Verbatim from the court's document (public domain). Ellipses mark omitted text; nothing is paraphrased.

before the filing deadline, and did not have time to cite appeal. The OSC noted that several quotations in EFD's check it before filing. Keiter acknowledges that the mistakes briefing in the “R” appeal appear to be fabricated. Azar, who in the briefing are “unacceptable,” but he asserts that signed the opening brief, and Keiter, who signed the reply, sanctions are unnecessary because the fabricated quotations both filed written responses to the OSC. are substantively similar to propositions in the cases cited. According to his response to the OSC, Azar was EFD's “To state the obvious, it is a fundamental duty of attorneys to trial counsel. Azar hired Keiter, a Certified Appellate Law read the legal authorities they cite in appellate briefs or any Specialist, to assist with the appeal. Azar ultimately prepared other court filings to determine that the authorities stand for the opening brief and most of the reply brief. Keiter formatted the propositions for which they are cited. Plainly, counsel did and filed the reply brief. not read the cases he cited before filing his appellate briefs: Had he read them, he would have discovered, as we did, Azar asked an artificial intelligence (AI) “consultant” to use that the cases did not contain the language he purported to AI to prepare a draft opening brief using trial court briefs quote [and] did not support the propositions for which they filed in the underlying lawsuit and an outline that Azar had were cited ....” (Noland v. Land of the Free, L.P. (2025) 114 prepared. The AI consultant cautioned Azar to double check Cal.App.5th 426, 445 (Noland).) These failures violate the the citations in the draft to confirm that the AI system had California Rules of Court, which require that arguments be not fabricated any legal authorities. After completing the draft supported “with citations to real (as opposed to fabricated) opening brief, Azar asked a paralegal to cite check the legal legal authority.” (Id. at p. 447, citing Cal. Rules of Court, authorities. He then realized the brief exceeded the word limit rule 8.204(a)(1)(B).) On our own motion, we may impose by around 6,000 words. Azar and his AI consultant decided sanctions for reliance on nonexistent legal authority and for words, “when one of a number of tort defendants enters unreasonable violations of the California Rules of Court. into a settlement agreement with a plaintiff, the nonsettling (Noland, at p. 445; Cal. Rules of Court, 8.276.) defendants’ liability to the plaintiff is reduced by the amount of the settlement.” (Bay Development, Ltd. v. Superior Court Sanctions may be awarded to compensate “the clerk (1990) 50 Cal.3d 1012, 1018.) of the court for conduct that unnecessarily burdens the court and the taxpayers.” 8 (Noland, supra, 114 Cal.App.5th “[T]he language of section 877 is significant—its drafters did at p. 447.) The fabricated citations in EFD's briefing not use the narrow term ‘joint tortfeasors,’ they used the broad required this court to spend unnec

Authorities cited in the passage: (1) times of services performed; (2) specific obligations involved; and (3) resulting damages · a judgment by default admits all material allegations of the complaint · Noland v. Land of the Free · Ltd. v. Superior Court Sanctions may be awarded to compensate

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