Court Revives Coverage Dispute, Sanctions Attorney Over AI-Cited Cases

A New Jersey appellate court on Friday reinstated a workers' compensation insurer’s coverage dispute after finding that a lower court improperly dismissed the case with prejudice, while also sanctioning the plaintiff’s attorney for citing nonexistent case law generated by artificial intelligence. In Amtrust North America etc. v. Liberty Mutual Insurance Co., the New Jersey Superior Court Appellate Division said AmTrust North America could proceed with its declaratory judgment action, but only after correcting a key procedural error. The disp...