Mundy v. Clickstop, Inc.

Billy Mundy and Amber Mundy v. Clickstop, Inc. d/b/a US Cargo Control and Crete Carrier Corporation, No. CI 23-6600, District Court of Nebraska, Douglas County, Order for Sanctions dated October 17, 2025 (Judge James M. Masteller). Copy of primary document: `files/sources/D-97-mundy-v-clickstop.pdf`.

Attorney James E. Harris of Harris & Associates, P.C., L.L.O., counsel for plaintiffs, filed briefs containing multiple fabricated and hallucinated citations generated by AI. At the show cause hearing he admitted he had used generative AI in his court filings and that the AI-generated content, including nonexistent cases and quotes commonly called "hallucinations," went beyond his established parameters and protocols without his knowledge or intent. He had previously attended trainings on AI use but failed to manually verify the output.

The court found sanctions warranted for Harris's failure to have adequate safeguards for using AI in drafting filings and his failure to manually verify AI-generated content, which obstructed the court's business and delayed summary judgment. Sanctions: all of plaintiffs' motions and briefs filed on or after July 28, 2025 that had not yet been ruled upon were stricken (plaintiffs may refile, deemed timely); henceforth every pleading, motion, or brief Harris files in the case must contain a written certification that no generative AI was used or that he manually verified all AI-generated text, citations, quotations, and authority; a $2,000 fine payable to the Clerk of the District Court by November 25, 2025; and the order was forwarded to the Counsel for Discipline for review and investigation.

Manually verify every AI-generated citation, quotation, and legal authority before filing, even after prior AI training. Put the verification protocol in writing and follow it on every filing. Include a self-certification step that forces a final human review of all authorities.