In Reddy v Saroya (2025 ABCA 322), the Alberta Court of Appeal confronted the issue of generative AI in legal practice for the first time. The main appeal involved a contempt order for failing to answer undertakings, but an additional concern arose when the appellant’s counsel submitted a factum containing several non-existent case citations.
Counsel admitted that a contractor had drafted the document and that time constraints prevented him from verifying the authorities. Although the contractor denied using AI, the respondent argued that the fabricated citations suggested the use of generative AI, which amounted to an abuse of process, warranting higher costs.
The Court referred to earlier warnings, such as NCR v KKB (2025 ABKB 417), where Justice Price cautioned that citing fake cases was akin to making a false statement to the court. It also reviewed existing guidance from the Law Society of Alberta and the Alberta Courts, both of which stress that lawyers must verify any AI-generated material under “meaningful human control.”
The Court noted that sanctions for non-compliance rest within judicial discretion and may include cost penalties. The pending costs decision in Reddy is expected to serve as an important precedent and warning for legal professionals about the unverified use of generative AI in court submissions.
Source: Mondaq
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