Court imposed fines on plaintiffs for negligent use of artificial intelligence

Sworn attorney Jüri Sirel and attorney Taavi Hein of Sirel & Partners Law Firm represented clients in court proceedings in which the administrative court decided to fine the opposing parties for providing false information related to the use of artificial intelligence.

For the first time in Estonian case law, the Tallinn Administrative Court fined plaintiffs who submitted to the court a document prepared by using AI that contained false information. The plaintiffs challenged the forest logging permit and in their appeal referred to scientific papers concerning the effects of clear-cutting of forest, but in reality the scientists and scientific works referred to did not exist. The administrative court fined the plaintiffs for providing false factual statements.

The court ruling highlighted that the use of artificial intelligence for preparing documents submitted to the court is not prohibited and is widely used. However, it is common knowledge that AI can provide misleading or even false information, which needs to be verified by reliable sources. The parties to the proceedings are responsible for the accuracy of the claims submitted to the court (Code of Civil Procedure). If any party to the proceedings refers to scientific sources, they must be convinced that the sources actually exist and contain the information claimed in the procedural document. Otherwise, it is a case of submitting false information to the court, which is punishable. The Estonian law allows the court to impose a fine of up to 3,200 euros on a party to the proceedings, although their financial status, the nature of the violation and other circumstances must also be taken into consideration (Code of Civil Procedure).

The Tallinn Circuit Court agreed with the administrative court and explained that the purpose of the fine was to respond to the violation that occurred and to prevent future violations. The Estonian Supreme Court did not take the case into proceeding, and the fines imposed by the administrative court have now entered into force.