Legal billing review is a structured process used by organizations to evaluate legal invoices for accuracy, compliance, and consistency with agreed billing guidelines. It is commonly used by insurers, corporate legal departments, and organizations that manage significant outside counsel spend.
Note: This article is for general informational purposes only and does not constitute legal advice.
What Is Legal Billing Review?
Legal billing review involves examining legal invoices submitted by outside counsel to determine if billed time and expenses align with:
- Billing guidelines
- Engagement terms
- Accepted billing practices
Key Point: Reviews are usually line-by-line, not just a high-level total check. They may be conducted internally or by independent reviewers under attorney supervision.
Why Organizations Use Legal Billing Review
Organizations conduct legal billing reviews to:
- Ensure compliance with billing guidelines
- Promote consistency across matters and vendors
- Identify potential billing errors or inefficiencies
- Support transparency and accountability in legal spending
- Inform budgeting, forecasting, and vendor management decisions
⚠️ Legal billing review is process-focused, not outcome-driven. It does not replace legal judgment on case merits.
Common Components of a Legal Billing Review
- Invoice Structure and Formatting
- Check if invoices follow the required format
- Standardized billing codes and task descriptions
- Time Entry Analysis
Review individual entries for:- Clarity and reasonableness
- Vague or insufficient descriptions
- Block billing or duplicate entries
- Expense Review
- Ensure expenses are allowed, reasonable, and documented
- Coding and Classification
- Proper use of task-based billing codes (like UTBMS codes)
- Guideline Compliance
- Check entries against billing rules agreed between organization and counsel
The Role of Attorney Supervision
- Ensures reviews are consistent with professional responsibilities
- Confirms legal context is considered properly
- Makes reporting defensible and suitable for internal/external use
⚠️ Attorney supervision does not mean reviewing legal strategy or giving legal advice.
Reporting and Use of Review Results
- Summarized in structured reports
- Used to:
- Communicate findings internally
- Discuss with outside counsel
- Update policies or billing guidelines
- Identify trends across matters or vendors
Reports are descriptive, not prescriptive, serving as management tools.
What Legal Billing Review Is Not
Legal billing review does NOT involve:
- Legal advice on case strategy
- Guaranteeing cost savings
- Altering invoices without permission
- Evaluating quality of legal representation
Key Considerations for Organizations
Before starting a review, consider:
- Appropriate scope of review
- How results will be used internally
- Importance of consistency and documentation
- Data security and confidentiality
- Alignment with internal policies and professional standards
Conclusion
Legal billing review is a process-oriented tool to ensure transparency, consistency, and accountability in legal invoicing. When conducted carefully, it supports informed decision-making without affecting substantive legal representation.
⚠️ This is for informational purposes only. An attorney-client relationship is formed only via a written engagement agreement.