Federal Judge Orders Additional $1.6 Million in Fees in RICO Case Won by Jason M. Hatfield After Defendant Uses ChatGPT

Springdale, Arkansas – A federal judge has ordered a Northwest Arkansas attorney to pay more than $1.6 million in additional attorney fees and costs, adding to an earlier judgment exceeding $11 million, in a racketeering case brought by Jason M. Hatfield, PA of Springdale, Arkansas.

In an order issued Wednesday, U.S. District Judge Timothy L. Brooks directed Tony Pirani and Fayetteville-based Pirani Law to pay $1,578,172 in additional attorney fees and $93,388 in costs. The judge also denied Pirani’s requests for a new trial or for the damages and fees previously awarded to be reduced or set aside.

The ruling follows an August judgment in which Judge Brooks awarded Hatfield a total of $11,473,000 after a federal jury found Pirani liable under the federal Racketeer Influenced and Corrupt Organizations Act, known as RICO, and under Arkansas civil conspiracy law.

According to court records, the case arose from the recruitment of families connected to a fatal tractor-trailer crash in Benton County in November 2020. Hatfield had secured a contract to represent the families involved. The lawsuit alleged that a network of individuals and firms used improper tactics to divert those clients, including having nonlawyers approach survivors at a funeral home and induce them to sign representation agreements with promises of financial assistance and immigration-related help.

Hatfield sued numerous defendants, alleging a coordinated unethical scheme to solicit clients at funeral homes. Court filings described a system in which funeral home directors were recruited to steer grieving families to the group. One witness testified at trial that he regularly contacted hundreds of funeral directors nationwide as part of the effort.

Most defendants ultimately settled out of court, according to filings. Pirani chose to go to trial. In July, a jury found that Pirani participated in the conspiracy and caused damages to Hatfield. The jury awarded $3,945,000 on the RICO claims. On the state civil conspiracy claim, it awarded $638,000 in actual damages and $2 million in punitive damages.

Under RICO, a successful plaintiff is entitled to recover treble damages, as well as the costs of the suit and reasonable attorney fees. Judge Brooks applied that provision in calculating the final judgment, which formed the basis for the August award.

In his most recent order, Judge Brooks also imposed sanctions on Pirani for procedural violations during the post-trial phase of the case. The judge found that Pirani missed multiple court deadlines and submitted filings that were generated with the assistance of ChatGPT, a generative artificial intelligence platform, and that those filings contained citations to nonexistent cases and quotations from nonexistent judicial opinions.

According to a prior opinion issued by Judge Brooks in July, Pirani admitted that he relied on ChatGPT to draft motions that he then signed and filed with the court. Pirani acknowledged that the AI-generated materials included fabricated legal authorities. Judge Brooks struck those motions from the record, noting that unlike traditional legal research tools such as Westlaw or Lexis, generative AI platforms do not independently verify citations and can produce plausible-sounding but fictitious legal references, a phenomenon commonly described as hallucination.

As part of Wednesday’s order, Judge Brooks fined Pirani $1,000 and imposed additional restrictions on his federal court practice. Pirani may not enter any new appearances as counsel of record in the Western District of Arkansas until the fine is paid in full. For a period of two years after payment, he must be accompanied by associate counsel in all appearances before the court. The co-counsel will share responsibility for compliance with court rules, deadlines and professional conduct.

Judge Brooks also formally referred Pirani to the Arkansas Supreme Court Office of Professional Conduct for further review, according to the order.

Pirani argued in motions filed in September that he did not receive a fair trial and that the damages and fees were excessive in light of his alleged role in the case. He attributed missed deadlines and the improper filings to a serious illness that limited his ability to work for several months. Judge Brooks rejected those arguments, ruling that the motions were filed after the applicable deadlines and did not justify relief from the judgment.

In the order, Judge Brooks said the sanctions were intended not only to address Pirani’s conduct, but also to deter similar misconduct by other attorneys practicing in the Western District of Arkansas, particularly with respect to the uncritical use of artificial intelligence in court filings.

CASE INFORMATION
Jason M. Hatfield, P.A. v. Tony Pirani
U.S. District Court, Western District of Arkansas
Case No. 5:22-CV-5110

At the Law Office of Jason M. Hatfield, P.A., we are seasoned veterans of the Arkansas legal system. We have families who are proud to live, work, and play in Northwest Arkansas – from Fayetteville to Bentonville.

Law Office of Jason M. Hatfield, P.A.
1025 E Don Tyson Pkwy
Springdale, AR 72764
(479) 888-4789
https://www.jhatfieldlaw.com/
Press Contact : Jason Hatfield

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