Nippon Life Insurance Company of America v. OpenAI Foundation

Nippon Life Insurance Company of America is a subsidiary of Japan's Nippon Life Insurance Company (Nissay). Nippon sells group employer-sponsored insurance products including health, dental, vision, and disability coverage.

Graciela Dela Torre, who suffered from carpal tunnel syndrome and epicondylitis, submitted a long-term disability benefits claim which was approved in August 2019 and later terminated in November 2021. She filed suit against Nippon in December 2022. The parties reached a settlement in January 2024, under which Dela Torre signed a release waiving all future claims against Nippon. The case was dismissed with prejudice.

After the settlement, Dela Torre became dissatisfied and consulted her attorney, who advised that additional litigation would be unlikely to succeed. She then uploaded her attorney's correspondence into ChatGPT and asked the system to evaluate the advice she had received. According to the complaint, ChatGPT concluded that the attorney's response constituted "gaslighting" and was aimed at emotionally manipulating Dela Torre, validated her distrust, and encouraged her to dismiss her legal counsel. Acting on ChatGPT's guidance, Dela Torre fired her lawyer and began using ChatGPT as her de facto legal advisor.

ChatGPT allegedly went on to assist with legal research, generate arguments under Federal Rule of Civil Procedure 60(b) to reopen the settled case, and draft motions, subpoenas, and other court filings, and to prevent the continuation of arbitration proceedings commenced by Nippon. When the court denied the motion to reopen, ChatGPT reportedly assisted in drafting an entirely new lawsuit against Nippon. The Complaint states that Dela Torre made multiple filings across the proceedings, some of which included citations to fictitious cases. Nippon contends that none of the filings served a legitimate legal or procedural purpose and that responding to them cost the company approximately $300,000 in legal fees.

The Complaint asserts three causes of action: (1) tortious interference with contract, alleging that ChatGPT actively undermined an enforceable settlement by encouraging Dela Torre to breach its terms; (2) unlicensed practice of law under 705 ILCS 205/1, alleging that ChatGPT provided legal advice, legal research, and legal analysis without being licensed to practice in Illinois; and (3) abuse of process, alleging that ChatGPT's generation of dozens of meritless filings constituted a misuse of the judicial system.

OpenAI updated its usage policies on 29 October 2025 to prohibit the use of ChatGPT for tailored legal advice without the involvement of a licensed professional, which the Complaint cites not as a defence but as evidence that the risks were foreseeable.

The Plaintiff seeks damages for substantial legal fees, costs, and other expenses incurred as a direct result of being forced to spend significant time and resources relitigating settled claims.