Insurers Have Started Warning Law Firms About ChatGPT: The Morning Minute
The news and analysis you need to start your day.
April 17, 2023 at 06:00 AM
4 minute read
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WHAT WE'RE WATCHING
INSURERS HAVE ENTERED THE CHAT - Everybody's talking about generative AI's application to legal. Now, as Law.com's Isha Marathe reports, a vital player in legal's ecosystem is entering the discussion—an insurance company. Attorneys' Liability Assurance Society Ltd. (ALAS), a mutual insurance carrier that caters to law firms sent out a newsletter-style bulletin to its policyholders titled "ChatGPT—Not Ready for Prime Time." The message warns attorneys that the GPT-powered chatbot comes with significant legal risks, from potential data privacy violations to the burden of disclosure that may come with its use. As of right now, it isn't clear whether risk management and insurance companies' hesitance around their clients using ChatGPT will necessarily translate into coverage-related repercussions. But Steven Puiszis, a partner at Hinshaw & Culbertson, told Marathe the legal risks associated with ChatGPT use in law firms are substantial enough to warrant a stream of memos similar to the one from ALAS.
FIX FEES - A recent spike in litigation against Tesla and other manufacturers is highlighting a new right-to-repair litigation trend following an FTC agreement with Harley Davidson and other companies reached in late 2022, Law.com's Brad Kutner reports. According to Law.com Radar, a handful of lawsuits have been filed against companies for violations of the Magnuson-Moss Warranty Act. The complaints allege companies that require repair and maintenance be done by company-owned shops violates the terms of a deal the agency reached in October with three American manufacturers. And while private suits are just starting to bubble up, practitioners are predicting more litigation, and action from state attorneys general, following the agency action.
ON THE RADAR - Epiq, a provider of technology-related services for the legal industry, and related entities were sued April 14 in New York Supreme Court for New York County. The lawsuit, brought by Trivella & Forte on behalf of Safeway Construction Enterprises LLC, seeks to prevent Epiq from destroying Safeway's legal documents related to an underlying wage-and-hour dispute. Counsel have not yet appeared for the defendants. The case is 651853/2023, Safeway Construction Enterprises, LLC v. Epiq Ediscovery Solutions, Inc. et al. Stay up on the latest deals and litigation with the new Law.com Radar.
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