Legal Billing Compliance Review
This case study demonstrates Revdoku’s custom checklist workflow. Instead of using a built-in checklist, the client uploads an engagement agreement and Revdoku generates tailored compliance rules from it. The invoice is then inspected against those rules, violations are flagged, and the corrected invoice is re-inspected to confirm full compliance.
The Engagement Agreement
Northridge Capital Partners LLC retained Barrett & Associates LLP for corporate acquisition due diligence on “Project Ridgeline.” The engagement agreement sets out four key billing terms — authorized staffing, hourly rates, a cap on administrative disbursements, and payment terms.
Creating a Custom Checklist
The client uploads the engagement agreement to Revdoku and generates a custom checklist. Revdoku extracts three compliance rules directly from the agreement terms.
The resulting checklist contains three rules:
- Staffing compliance — all attorney hours from authorized senior partners only
- Administrative charges cap — administrative charges ≤ $150/month
- Billing rates — rates match agreed schedule
The Invoice
Barrett & Associates submits Invoice #BA-2026-0342 for March 2026 legal services on Project Ridgeline. The invoice totals $12,815.00 and includes line items for partner time, associate time, paralegal work, and administrative disbursements.
First Inspection Results
Overall compliance score: 33% — 2 of 3 rules failed.
| Rule | Status | Key Finding |
|---|---|---|
| Staffing compliance | FAIL | Ryan Torres (Associate) billed 10 hours ($2,750). Only Barrett and Chen are authorized for substantive work |
| Administrative charges cap | FAIL | Total admin disbursements $465 exceed the $150/month cap by $315. Photocopying alone is $340 |
| Billing rates | PASS | Senior Partner $450/hr and Paralegal $150/hr match the engagement agreement |
Compliance report showing 33% score with two rule violations flagged.
Issues Found
Staffing Compliance (FAIL)
Ryan Torres, an associate attorney, billed 6 hours for legal research and 4 hours for document drafting at $275/hr ($2,750 total). The engagement agreement explicitly restricts substantive legal work to senior partners James Barrett and Susan Chen. No prior written approval was obtained for associate involvement. This is a billing guideline violation that the client is not obligated to pay.
Administrative Charges Cap (FAIL)
Administrative disbursements total $465 for the month: $340 for photocopying and printing, plus $125 for courier and filing fees. The engagement agreement caps administrative charges at $150/month without prior written approval. The $340 photocopying charge alone exceeds the entire monthly cap by $190. Total overage is $315.
The Revised Invoice
Northridge Capital Partners flags both violations and sends the report back to Barrett & Associates. The law firm submits a corrected invoice:
- Associate hours reassigned to the authorized senior partners (Barrett and Chen)
- Administrative photocopying reduced from $340 to $95, courier/filing from $125 to $50 (total $145, under the $150 cap)
- New subtotal: $14,245.00 (higher than original due to partner rates replacing associate rates)
Second Inspection Results
Overall compliance score: 100% — 0 of 3 rules failed. All rules passed.
| Rule | Status | Key Finding |
|---|---|---|
| Staffing compliance | PASS | All attorney hours billed by James Barrett and Susan Chen. No unauthorized timekeepers |
| Administrative charges cap | PASS | Total admin disbursements $145, under the $150/month cap |
| Billing rates | PASS | Senior Partner $450/hr and Paralegal $150/hr match the engagement agreement |
Compliance report showing 100% score after all violations were corrected.