The Canadian Court Record on AI Hallucinations
These are confirmed, reported decisions — spanning BC, Ontario, Alberta, Quebec, and the Federal Court. This is no longer a hypothetical risk.
Counsel cited two non-existent authorities sourced from ChatGPT without verification. After admitting the citations came from AI and had not been checked, the lawyer was held personally liable for costs awarded to the opposing party.
A lawyer was ordered to attend a contempt of court hearing after citing non-existent cases in written submissions. The court found the factum appeared to be AI-generated and that counsel may not have verified whether the cited cases were real. The court dismissed the contempt proceeding only after the lawyer admitted the error, apologized, and committed to AI-specific professional development.
Counsel used Visto.ai — a legal AI tool designed specifically for Canadian immigration and refugee law practitioners, not a generic chatbot. The tool hallucinated two non-existent cases and mis-cited an existing case for a proposition it did not support. The Court found that counsel's concealment of AI reliance amounted to misleading the Court and ordered costs personally against counsel. This case confirms that law-specific AI tools are not safe by default.
A self-represented individual was fined $5,000 for submitting AI-invented jurisprudence. The Court identified eight instances of non-existent citations, decisions not rendered, irrelevant references, and inconsistent conclusions.
The Court held that a Calgary lawyer bears ultimate responsibility for a factum containing hallucinated case law — even though the factum was prepared by a third-party contractor who may have lied to the lawyer about not using an LLM. The lawyer had in fact banned his own firm from using generative AI. That ban offered no protection whatsoever.
The takeaway: A lawyer cannot avoid liability by banning AI, by delegating to a contractor, or by using a "legal-specific" tool rather than a generic chatbot. The only defensible position is a documented, auditable verification process.