$55K Sanctions Related in Part to AI-Hallucination-Filled Court Filings

An excerpt from the 12K-word opinion in Heimkes v. Fairhope Motorcoach Resort Condo. Owners Ass'n, Inc., decided Tuesday by Judge Terry Moorer (S.D. Ala.):

Attorney Franklin Hollis Eaton, Jr. filed several pleadings which contained fabricated citations and false statements of law that he failed to check or correct prior to submission. The Court had already discovered problems with Mr. Eaton's filings when Defendant filed its first motion flagging numerous misstatements of law. The Court then issued two show cause orders regarding the misstatements, which were partially acknowledged by Mr. Eaton, though he has failed to fully and accurately address the Court's numerous concerns despite as many opportunities to do so.

From the outset, the Court notes that this case is not just about Mr. Eaton's most recent misstatements of law, but rather about a pattern of conduct throughout this case that raises significant concerns about his competency to practice law. In sum, the misstatements and misrepresentations were just the final straw. After a careful review of the matter, the Court finds that Mr. Eaton's conduct amounts to bad faith. Therefore, the Court SANCTIONS him under Rule 11, Alabama R. 3.3, and the Court's inherent authority and ORDERS as follows:

1. Attorney Franklin Hollis Eaton, Jr. is hereby REPRIMANDED and this reprimand shall be published as follows:
   1. Attorney Franklin Hollis Eaton, Jr. shall file, not under seal, a copy of this Memorandum Opinion and Order in any case in any court wherein he has appeared as counsel and final judgment has not been entered;
   2. Attorney Franklin Hollis Eaton, Jr. shall file, not under seal, a copy of this Memorandum Opinion and Order in any case in any court wherein he appears as counsel for twelve (12) months after the date of this order;
   3. Attorney Franklin Hollis Eaton, Jr. shall provide a copy of this Memorandum Opinion and Order to any jurisdiction in which he is licensed to practice law within two (2) business days of the issuance of this order. He shall further file a notice of compliance with the Court no later than the third business day from the date of this opinion.
   4. The Clerk of Court shall send a copy of this Memorandum Opinion and Order to the General Counsel of the Alabama State Bar for review. Though referred to the Alabama State Bar for any disposition it deems appropriate, the undersigned regrettably recommends that Attorney Franklin Hollis Eaton, Jr. be found incompetent to practice law.
   5. The Clerk of Court shall send a copy of this Memorandum Opinion and Order to the Chief Judges for the Northern District of Alabama, the Middle District of Alabama, and the Southern District of Alabama.
   6. To further effectuate the reprimands and deter similar misconduct by others, the Clerk of Court is DIRECTED to submit this order for publication in the Federal Supplement.
2. Franklin Hollis Eaton, Jr. shall pay attorney fees in the amount of $55,597.00 to Defense counsel for their time spent addressing Mr. Eaton's misstatements of law.
3. Pursuant to S.D. Ala. GenLR 83.4(a) and (h)(1), the undersigned refers to the Judges of the Southern District of Alabama a review of Franklin Hollis Eaton, Jr….

The court begins by pointing to a wide range of past behavior by Mr. Eaton: