Executive Summary

That whatever you type into a search box is kept somewhere is common knowledge by now. What people write to a chatbot is not yet felt that way. It is closer to talking to yourself, closer to a consultation, and above all it is written without a thought for who might read it. U.S. courts have spent this year drawing a line that runs against that feeling. This article sets the demand for evidence reported on October 19 in the Fontainebleau lawsuit beside a decision the federal court in Nevada issued three weeks earlier, which at first reading points the opposite way.

The company that owns the Fontainebleau hotel, now arguing over how much it can collect from a defendant who has already lost on liability for defamation, asked him to hand over the prompts and conversations he exchanged with AI chatbots. It argues that those records are a written distillation of the defendant's state of mind. Florida law lifts the cap on punitive damages once a defendant is found to have acted with intent to harm, so what he was thinking at the time becomes the size of the check. The court has not answered the request.

Everything through Section 4 follows the facts set down in published decisions and reporting. Section 5, which reads the story through the eyes of a company that has brought chatbots into its work, is this article's own interpretation.

Key Figures

The four numbers come from four different cases. The first two point to where the force that pulls chatbot records into court comes from, and the last two set the one place that force has been stopped beside the place it has never been stopped at all.

Sources: Volokh Conspiracy (October 19, 2026), eDiscovery Today (October 12, 2026), BSF Perspectives.

No cap

Punitive damages once intent to harm is found

Florida Statutes § 768.73(1)(c) — why the plaintiff wants the chat logs

20 million

ChatGPT conversations a court ordered produced

Southern District of New York, January — de-identified user conversations

About 40 pages

The expert ChatGPT log whose full-production order was reversed

District of Nevada, September 29 — questions protected, cited material disclosed

Zero

Times a privacy objection has blocked production

By BSF's account — no such objection has succeeded so far

1

From a Hotel Lobby Argument to a Demand for Chat Logs

It began in the lobby of the Fontainebleau in Miami Beach in December 2024. A guest and Rabbi Shmuley Boteach fell into an argument about the war in Gaza. Boteach, who calls himself America's Rabbi, has 1.2 million social media followers. Over the following weeks he publicly accused the hotel and its staff of tolerating antisemitism, and the company that owns the hotel sued him for defamation and tortious interference in the Southern District of Florida. The case number is 1:25-cv-20251.

Exterior of the Fontainebleau hotel on Collins Avenue in Miami Beach, the site of the lobby argument that led to the lawsuit
▲ The Fontainebleau hotel in Miami Beach, where the lobby argument took place in December 2024 | Source: Wikimedia Commons (Ebyabe, CC BY-SA 3.0)

The case went badly for the defendant. In September 2025 the district judge denied his motion to dismiss, so the suit went forward, and in February 2026 the magistrate judge imposed sanctions. His answer and defenses were struck, his counterclaims were dismissed with prejudice, and liability was entered for the plaintiff. That leaves a single question for the trial set for February 2027. How much the hotel collects.

It is at that stage that the plaintiff asked for the defendant's AI chatbot records. Its filing describes the prompts and conversations as a written distillation of the defendant's state of mind — no better window exists into what a person actually meant, the argument runs. The headline on the October 19 Volokh Conspiracy post that reported the demand took the plaintiff's framing straight from the brief: the AI data will provide an unrivaled view into the mind of a defendant.

The defense answered that the request sweeps far too broadly. U.S. civil procedure has a discovery phase in which each side must hand over the material it holds before trial, and that phase runs under a deadline. The general deadline had already passed, the defense says, and the plaintiff is now using the damages stage to ask for everything exchanged with an AI. Which side is right has not been settled. The court has neither granted nor denied the request, and has not said how far it would reach if granted. The one fact fixed at this point is that the demand was made.

2

Once Intent to Harm Is Found, There Is No Cap on Damages

Why the plaintiff is trying to prove a state of mind at all becomes clear from the structure of American damages. There are two tracks. Compensatory damages make good the loss actually suffered. Separately, punitive damages punish the defendant and deter a repeat. The second track can run high, so states place caps on it. Florida does too.

One exception sits inside that cap. Florida Statutes § 768.73(1)(c) does not apply the cap where the defendant is found to have acted with a specific intent to harm. Prove that he was not merely reckless but set on hurting the other side, and the ceiling on the number disappears. That is why the plaintiff is digging into what was in the defendant's head at the time of the posts. In this case his intent is not an ethical question but a financial one.

The plaintiff rests on more than the state statute. It says it also relies on Supreme Court and Eleventh Circuit precedent weighing a defendant's mental state in punitive damages. It does not say which cases, and the report of the demand does not name them either.

This is where chatbot records occupy a place of their own. A social media post is written for an audience, so it comes dressed up. What goes to a chatbot is written to get a result. You have to set down what you want to do and how it might be done, or nothing useful comes back. The gap between the public statement and the private question is exactly what the plaintiff is after.

A defendant's state of mind is the hardest thing to litigate. There was no way to reach it except backwards, by inference from outward conduct, which is why an intent requirement has always been a high wall for plaintiffs. The plaintiff is going after chatbot records because it believes a way around that wall has opened.

3

Three Weeks Earlier, a Nevada Court Protected an Expert's Questions

One decision from the same autumn reads as the exact opposite. In a case against the Las Vegas police department (Villanueva v. Las Vegas Metropolitan Police Department, 2:24-cv-00125), it emerged that Tom Melton, an expert witness for the defense, had used ChatGPT while writing his report and had not disclosed it. The magistrate judge ordered him to produce the entire ChatGPT log, running to roughly 40 pages.

The Lloyd D. George Federal Courthouse in Las Vegas, home of the federal district court that heard the Villanueva ChatGPT-log dispute
▲ The Lloyd D. George Federal Courthouse in Las Vegas, home to the District of Nevada court that decided Villanueva | Source: Wikimedia Commons (U.S. DOJ, Public Domain)

On September 29 Judge Anne Traum reversed that order, holding that the part requiring everything was clearly erroneous or contrary to law. She split the log in two instead. Facts and data the expert consulted in forming his opinion, such as AI-generated case summaries, are disclosable. The other side has to be able to test that basis, and in particular to check whether fabricated citations found their way in. The expert's own questions and prompts, by contrast, she treated as protected.

What divided the two halves was what the questions reveal. What an expert asked first and what he kept going back to carries how he reads the case and where he senses weakness. The court treated that as mental impressions and theories about the litigation, and extended the purpose of Federal Rule of Civil Procedure 26(b)(4)(B), which shields draft expert reports, to AI conversations. Material prepared for witness examination is protected on the same logic.

The reach of this decision should be read narrowly. It concerns the working process of an expert retained for litigation, not a holding that everything a party writes to a chatbot is protected. It also matters that this was a district judge correcting a magistrate judge's order. It records a disagreement inside a single court about how much to make a party turn over.

4

The Two Rulings Sit on Opposite Sides of One Line

One court is reaching for chatbot conversations and the other is keeping them back, which looks like a contradiction. Compare the questions the two cases ask and they do not overlap. In the Fontainebleau lawsuit the issue is what the defendant had in mind when he posted. Intent is itself an element, so the words he wrote at the time are evidence as they stand. In Villanueva the issue is the conduct of the police, not how the expert reasoned. Prying into the path an expert took to his conclusion is closer to looking into the other side's trial preparation, and that territory was protected long before AI arrived.

Reduce the line courts have drawn so far to a single sentence and it comes out like this. Whose mind is this record being used to prove? If it is the party's own mind, it falls on the evidence side; if it is the working process of the side preparing the case, it falls on the protected side. What decides it is not what was asked but whose thinking the question exposes.

Evidence side — the party's mind

When what the person was thinking is the issue. Where intent, malice or motive is an element, what that person wrote to a chatbot sits in the same place as an email or a chat message.

Protected side — the preparer's process

What a lawyer or expert asked while preparing the case. The order and repetition of the questions expose strategy, so they are handled as work product. Put the answers forward as a basis, though, and that much of the protection falls away.

Earlier cases laid this line down piece by piece. Over the course of this year U.S. courts have issued one decision after another on chatbot records, and they have tended in one direction. In January the Southern District of New York ordered 20 million de-identified ChatGPT conversations produced in a copyright case, reasoning that records a user handed to a platform voluntarily are not the same as communications intercepted in secret. In February the same court, in Heppner, declined to extend attorney-client privilege on the ground that an AI is not a lawyer. The fact that the terms of service collect the conversations, it held, undercuts any expectation of confidentiality.

March brought a case in which such records landed in the text of a judgment. Fortis Advisors v. Krafton, in the Delaware Court of Chancery. When Krafton acquired the studio behind Subnautica in 2021 it promised 500 million dollars up front and up to 250 million more in earnout, and the chief executive's conversation with ChatGPT about how to avoid paying it was quoted verbatim in the opinion. The exchanges continued after his advisers warned that the legal ground was thin, and the record even holds his complaint when the chatbot replied that canceling the contract would be difficult. He admitted deleting some of the logs, but copies shared over the company's internal messenger survived.

These are decisions by different courts on different questions, and yet lining them up by date shows where chatbot records moved in the space of a year. In January the conversations piled up on a platform were called in wholesale, and by March they were being set into the body of an opinion.

2026: five times a court handled chatbot records The first three lean toward production, the fourth protects the questions, the fifth has no answer yet January 5 In re OpenAI 20 million chats ordered produced February 17 Heppner an AI is not a lawyer March 16 Krafton judgment the CEO's chats quoted in the opinion September 29 Villanueva full-production order reversed October 19 Fontainebleau demanded as evidence of state of mind The first four are rulings a court issued; the demand in the Fontainebleau lawsuit has no answer from the court yet. Dates are those of each decision or of the report.
▲ Pebblous original diagram | Reconstructed from the chronologies compiled by BSF Perspectives, eDiscovery Today and Volokh Conspiracy

Protection is not entirely absent. In May 2025 the Northern District of California, in the suit between Concord Music Group and Anthropic, left room to treat undisclosed prompts entered at counsel's direction as work product. It did hold that the 5,000 items actually put forward as the basis of an argument had waived that protection. For the items held back and never used, the refusal to produce was upheld. Records a lawyer uses as a tool in the course of giving legal advice may be handled differently, in other words, but the protection lapses over whatever is actually relied on, and no further.

One attitude runs through all six, Concord included. Courts do not regard chatbot conversations as a specially private domain. Chatbot records are passing now through the place email and workplace messaging passed 20 years ago. BSF's observation that no privacy objection has yet blocked production is a summary of that current.

5

Why Pebblous Is Watching This Lawsuit

All of this is a story about American courts. Discovery in this form does not exist in Korea, so the holdings do not cross over as they stand. There is still a reason not to file it away as someone else's problem. Korean outlets have reported investigators examining a suspect's ChatGPT history, and lawyers who now start a matter by asking what the client put to a chatbot. The systems differ, but the condition that the record is sitting somewhere is the same.

The homework these cases hand a company is not a course in doctrine. It is a classification problem. What kind of data the questions employees put to chatbots dozens of times a day are accumulating as, and who can pull them out, is undecided at most companies. Deciding after a suit is filed is too late. By then the other side arrives holding the list.

Three things can be checked today. None of them requires buying a new system.

  • • Where work conversations accumulate. On a company license, retention and access are under the company's control. Where the habit of asking work questions from a personal account persists, those records pile up somewhere the company can neither delete nor defend. When a suit calls for them, the company finds out only that it has no control over them
  • • That deleting is not the answer. In the Krafton case the deleted logs came back as copies shared over the internal messenger. The larger problem is that the deletion itself becomes an issue. From the point a dispute is reasonably anticipated the rule is not to delete, and who announces that point, and how, has to be settled in advance
  • • Whether use for legal advice is kept separate. Heppner held that a chatbot carries no privilege of its own, and Concord left room for work product protection over prompts entered at counsel's direction. That difference can only be argued where the record shows who asked the question and why

All three point to the same place. Not knowing where a record lands and under what label, a company cannot decide which side that data falls on. Chatbot conversations often have no name yet in a company's inventory of data, while courts already count them as ordinary electronic records. What is strange is data being called first in a courtroom and not in the inventory, not the way courts are ruling.

Editor's Note

Email too was taken for something private, like a letter, at the start. Changing that sense took a long time, and only after it changed did companies write retention policies. Chatbot records are going through that shift far faster. Whichever way the Fontainebleau lawsuit comes out, the demand alone is enough that plaintiffs in the next case will write the same list.

Thanks for reading this far. The facts in this article were checked against the plaintiff's filing as reported by the Volokh Conspiracy, eDiscovery Today's account of the Nevada decision, and BSF's survey of the case law. The Fontainebleau lawsuit is still pending, and when the court fixes the scope of production we will cover that separately. If you have settled on a way of classifying chatbot conversations inside your own company, we would like to hear about it.

Pebblous Data Communication Team
October 20, 2026

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