Domain expertise enhances judgment within boundaries but creates systematic vulnerabilities specifically at borders. We term this Transitive Expert Error (TEE), distinct from Dunning-Kruger effects, requiring calibrated expertise as precondition. Mechanisms enabling reliable within-domain judgment become liabilities when structural similarity masks causal divergence. Two core mechanisms operate: structural similarity bias causes experts to overweight surface features (shared vocabulary, patterns, formal structure) while missing causal architecture differences; authority persistence maintains confidence across competence boundaries through social reinforcement and metacognitive failures (experts experience no subjective uncertainty as pattern recognition operates smoothly on familiar-seeming inputs.) These mechanism intensify under three conditions: shared vocabulary masking divergent processes, social pressure for immediate judgment, and delayed feedback. These findings extend to AI routing architectures (MoE systems, multi-model orchestration, tool-using agents, RAG systems) exhibiting routing-induced failures (wrong specialist selected) and coverage-induced failures (no appropriate specialist exists). Both produce a hallucination phenotype: confident, coherent, structurally plausible but causally incorrect outputs at domain boundaries. In human systems where mechanisms are cognitive black boxes; AI architectures make them explicit and addressable. We propose interventions: multi-expert activation with disagreement detection (router level), boundary-aware calibration (specialist level), and coverage gap detection (training level). TEE has detectable signatures (routing patterns, confidence-accuracy dissociations, domain-inappropriate content) enabling monitoring and mitigation. What remains intractable in human cognition becomes addressable through architectural design.