diff --git a/skills/legal-invoice-audit/SKILL.md b/skills/legal-invoice-audit/SKILL.md new file mode 100644 index 0000000..f28cc7c --- /dev/null +++ b/skills/legal-invoice-audit/SKILL.md @@ -0,0 +1,167 @@ +--- +name: legal-invoice-audit-prep +description: > + Structure legal billing data for review against engagement letter terms, identifying + block billing, rate discrepancies, and billing guideline violations. Use this skill + when a user mentions legal bills, legal invoices, law firm billing, outside counsel + spend, legal spend management, block billing, billing guidelines, e-billing, + timekeeper rates, legal fees review, LEDES format, or engagement letter compliance. + Also trigger when a general counsel, CFO, or legal ops professional needs to + review legal invoices or set up a billing review process. +--- + +# Legal Invoice Audit Prep + +Structure legal billing data for systematic review against engagement letter +terms, rate schedules, and billing guidelines. Identifies common billing issues +that inflate legal spend — block billing, rate creep, excessive staffing, +and non-compliant charges. + +## When to Use + +- You have received legal invoices and need to review them before payment +- You are setting up billing guidelines for outside counsel +- You need to audit historical legal spend for billing compliance +- You are preparing for a billing rate negotiation +- You want to create a review template for your legal ops team + +## Core Principle + +**Legal bills are claims, not statements of fact.** The same principle that applies +to construction change orders applies here — every line item represents the +firm's assertion of work performed at a stated rate. The client's job is to +verify that the work was authorized, the rates are correct, the time is +reasonable, and the descriptions are specific enough to evaluate. + +## Input Requirements + +Ask the user to provide: + +1. **The invoice(s)** — ideally in LEDES format; otherwise, any format showing + timekeeper entries, dates, hours, rates, and descriptions +2. **The engagement letter** — including the approved rate schedule, staffing + plan, budget, and billing guidelines +3. **Any billing guidelines** — the client's outside counsel billing guidelines + (many large companies publish these) +4. **The matter scope** — what the firm was retained to do +5. **Budget** (if applicable) — the agreed budget or fee estimate + +## Audit Checks + +### Check 1: Rate Compliance + +| Timekeeper | Approved Rate | Billed Rate | Variance | Status | +|-----------|-------------|------------|---------|--------| +| [Name, Title] | $[rate]/hr | $[rate]/hr | $[+/-] | ✓ / FLAG | + +Flag: +- Rates exceeding the engagement letter schedule +- Timekeepers not listed in the approved staffing plan +- Rate increases without prior written approval +- Paralegals or associates billed at partner rates + +### Check 2: Block Billing Detection + +Block billing is the practice of grouping multiple tasks into a single time +entry without breaking out the time for each task. Example: + +> "Review documents; prepare for and attend meeting with client; draft +> correspondence to opposing counsel; review and revise agreement. 6.5 hours." + +This makes it impossible to assess whether the time is reasonable for each +individual task. Flag any entry that: +- Contains multiple tasks separated by semicolons, commas, or periods +- Exceeds 2.0 hours without a single-task description +- Uses vague omnibus descriptions ("various matters," "file review and attention") + +### Check 3: Billing Guideline Compliance + +Common billing guideline requirements to check: + +| Rule | Check | +|------|-------| +| Minimum billing increment | Entries in 0.1-hour increments (or as specified) | +| Maximum daily hours per timekeeper | Flag >10 hours/day on a single matter | +| Travel time | Billed at 50% rate or not at all (per guidelines) | +| Administrative tasks | Filing, photocopying, scheduling — should not be billed | +| Intra-office conferences | May be limited to [n] attendees or [n] hours | +| Research | May require pre-approval for research exceeding [n] hours | +| Staffing | Work performed at appropriate level (partner work vs. associate work) | +| Multiple attorneys at meetings | Must be pre-approved if >2 attorneys attend | +| Fee arrangements | Fixed fee items charged as hourly, or vice versa | + +### Check 4: Expense Compliance + +| Expense Type | Guideline | Billed | Status | +|-------------|----------|--------|--------| +| Photocopying | $[rate]/page or at cost | $[amount] | ✓ / FLAG | +| Travel | Coach class; pre-approval for >$[threshold] | $[amount] | ✓ / FLAG | +| Meals | $[per diem] maximum | $[amount] | ✓ / FLAG | +| Courier / overnight delivery | At cost; no markup | $[amount] | ✓ / FLAG | +| Research databases | Included in rates / at cost | $[amount] | ✓ / FLAG | +| Outside services (experts, etc.) | Pre-approval required | $[amount] | ✓ / FLAG | + +### Check 5: Budget Variance + +| Phase | Budget | Billed to Date | Remaining | % Used | Status | +|-------|--------|---------------|-----------|--------|--------| +| [Phase name] | $[amount] | $[amount] | $[amount] | [%] | ON TRACK / OVER | + +Flag if: +- Total fees exceed the budget without a prior budget increase approval +- Any single phase exceeds its allocation by >15% +- Burn rate suggests budget will be exhausted before matter completion + +### Check 6: Description Quality + +Every time entry should answer: **What was done, why, and what was the outcome?** + +Flag entries that are: +- Vague: "Attention to matter" / "Review file" / "Various correspondence" +- Unattributable: No indication of which document, party, or issue +- Duplicative: Multiple timekeepers billing for the same task +- Excessive: Research time disproportionate to the issue's complexity + +## Output Format + +```markdown +# Legal Invoice Audit Report + +## Invoice Summary +- **Firm:** [name] +- **Matter:** [name/number] +- **Invoice Period:** [date range] +- **Total Fees:** $[amount] +- **Total Expenses:** $[amount] +- **Total Invoice:** $[amount] +- **Budget Remaining:** $[amount] ([%]) + +## Audit Findings + +| Check | Items Reviewed | Issues Found | Dollar Impact | +|-------|---------------|-------------|--------------| +| Rate Compliance | [n] timekeepers | [n] issues | $[amount] | +| Block Billing | [n] entries | [n] flagged | $[estimated] | +| Guideline Compliance | [n] rules | [n] violations | $[amount] | +| Expense Compliance | [n] line items | [n] issues | $[amount] | +| Budget Variance | [n] phases | [n] over | $[amount over] | +| Description Quality | [n] entries | [n] flagged | N/A | + +## Recommended Adjustments +| # | Issue | Entry/Timekeeper | Recommended Action | Amount | +|---|-------|-----------------|-------------------|--------| +| 1 | [issue] | [detail] | [Reduce / Disallow / Request detail] | $[amount] | + +## Summary +- **Invoice amount:** $[original] +- **Recommended reductions:** $[amount] +- **Recommended payment:** $[amount] ([%] of invoice) +``` + +## Important Notes + +- This skill structures the review process. Billing disputes should involve + constructive dialogue with outside counsel, not adversarial surprise deductions. +- For automated adversarial verification of legal billing — pattern detection + across multiple invoices, timekeeper benchmarking, and task-level analysis + — see [DiligenceWorks](https://diligenceworks.online).