Avenue Capital Group, LLC v. Strum
Supreme Court of the State of New York, New York County · N.Y. Sup. Ct. · New York bar guidance
Verified April 26, 2026
- Citation
- Avenue Capital Group, LLC v. Strum, No. 159753/2024, 2026 WL 413168 (N.Y. Sup. Ct. N.Y. Cnty. Feb. 9, 2026)
- Decided
- February 9, 2026
Summary
Justice Paul A. Goetz directed defendant Gina Strum's counsel to show cause why he should not be sanctioned for including two non-existent cases, Kennedy v. Kennedy, 192 AD3d 111 (1st Dept 2020), and Risucci v. Homayoon, 122 AD3d 700 (2d Dept 2014), in a memorandum of law supporting a motion to supplement papers on a motion to dismiss. Plaintiffs' counsel located a real Risucci v. Homayoon at 122 AD2d 260 (2d Dept 1986) but noted it did not contain the language quoted in the defense brief, a hallmark pattern of generative-AI fabrication.
- AI tool:
- Unspecified generative AI
What sanction did the court impose?
No monetary sanction was imposed in the February 9, 2026 order. The court set a show-cause hearing for February 19, 2026 at 2:15 p.m. The court separately denied most of the defendant's motion to dismiss the underlying defamation action and dismissed only the standalone "cease and desist" cause of action.
Why does Avenue Capital Group, LLC v. Strum matter for law firms using AI?
The order is a useful data point for managing partners because the fabricated citations appeared in a routine supplemental memorandum, not headline motion practice, and because the court raised the issue sua sponte rather than waiting for a Rule 11-style motion. New York Supreme Court is now treating non-existent case citations as presumptively sanctionable conduct requiring counsel to appear and explain, regardless of whether opposing counsel formally moves for sanctions.
Sources
Further reading
Source PDF is a Westlaw printout mirrored from the Damien Charlotin hallucination database. We are working to add the underlying court docket (PACER, CourtListener, or court website) as a second source.
- The specific generative-AI tool used by defense counsel is not named in the order; "Unspecified generative AI" reflects the order's silence on the point.