AIA-2026-0021Courts and legalUnder review

Supreme Court ordered costs against an applicant who relied on AI-hallucinated cases (Chen v Goodmore Investments)

The Supreme Court dismissed a self-represented applicant’s leave applications, which relied on authorities it identified as hallucinations of a generative AI application, and ordered costs against her.

Severity 2 of 5: Moderate. Costs ordered against the applicant; applications dismissed. How we rate severity
Date it happened
1 May 2026
Added to the register
1 May 2026
Type of AI involved
Generative AI (legal research)
Kind of harm
Misleading information; costs
Last updated
29 October 2026

What happened

In Chen v Goodmore Investments Ltd and Tawa [2026] NZSC 40, a self-represented applicant’s submissions relied on fabricated case law and mischaracterised real authorities, which the Supreme Court identified as hallucinations of a generative AI application. The Court dismissed her applications for leave to appeal, a stay and new evidence, and ordered costs against her. It repeated its warning that such conduct could, in serious cases, amount to contempt or obstruction of justice.

Sources

  1. Chen v Goodmore Investments Ltd and Tawa [2026] NZSC 40 (decision)
    Supreme Court, 1 May 2026
  2. Case record
    AI Vortex legal AI risk database, 2026

Change history

  • 30 Oct 2026 Added to the register.

Cite this entry

AI Incidents Aotearoa. (2026). Supreme Court ordered costs against an applicant who relied on AI-hallucinated cases (Chen v Goodmore Investments) (AIA-2026-0021). AI Safety Aotearoa. Retrieved 29 October 2026, from https://aiincidents.nz/register/supreme-court-ordered-costs-against-an-applicant-who-relied-on-ai-hallucinated-cases-chen-v-goodmore-investments/

Other formats

Spot a mistake?

Tell us and we’ll check it. Every change is logged.

Suggest a correction

Has this happened to you?

AI Safety Aotearoa has plain-language guides on what to do.

Read the guides