Where Do Legal Factors Live in LLMs?

Li Zhang, Kevin Ashley

In case-based legal reasoning, legal professionals identify legally significant fact patterns in a new dispute and compare them with those of decided cases. In AI & Law, HYPO dimensions and CATO factors represent these patterns symbolically, organizing expert knowledge distilled from case narratives as explicit, structured, interpretable, and auditable legal concepts and relations that support case comparison, legal argument, and precedent-based reasoning. Large language models (LLMs) are increasingly used for legal tasks, yet their internal organization of legal knowledge remains difficult to trace. We investigate whether LLMs form internal representations corresponding to all 26 CATO factors. Two research questions examine linear decodability and sparse localization with sparse autoencoders. Experiments cover three open models, Qwen3-1.7B, Qwen3-8B, and Gemma-2 2B, supported by cross-model comparison and human audit of controlled natural-language passages. Results show that all 26 factors are linearly decodable in all three models. Single-feature sparse readouts cover the complete factor catalog, with best-layer test AUCs ranging from 0.86 to 1.00. Five selected features…