Legal Fee Audits: Comprehensive and Objective Analysis
At Jim Schratz and Associates, we provide comprehensive legal fee audits designed to offer transparency and accountability in billing practices.
LEGAL FEE ANALYSIS
Legal Fee Audits
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Initial Review
Before accepting any client or law firm for audit services, we first perform an initial review of the invoices, free of charge. Legal-fee audit engagements generally require at least $500,000 in fees at issue. If we find no indication that an audit is needed, we advise the potential client accordingly. This ensures that clients only proceed when there is a justified need.
When a Full Audit Is Warranted
In approximately 15-20% of cases, we conclude that an audit would not be beneficial. For the remaining cases, we identify "red flags" of potential billing discrepancies and recommend a full-scale legal fee audit.
What a Full Audit Includes
The audit follows the billing records through to the underlying work and, when needed, expert testimony:
- Inputting and coding the invoices for detailed analysis.
- Generating and reviewing computer reports that identify trends, patterns, and anomalies.
- Thorough examination of all available work product, including pleadings, correspondence, deposition transcripts, and more.
- Unlimited consultation to generate customized reports as per the client's needs.
- Drafting of a comprehensive expert report.
- Consultation with clients and attorneys to prepare for trial, including expert testimony when needed.
- Attendance at depositions to assist in cross-examination, if appropriate.
- Providing trial testimony and post-trial consultation, including support during appeals.
Compare the Time Billed With the Work Performed
We examine the time billed for pleadings, depositions, and other legal work alongside the available work product. If a deposition lasts two hours but an attorney bills for six, for example, we flag the difference and investigate the explanation.
Every invoice is reviewed in the context of the case and the complexity of the work. This provides a factual basis for assessing potential overbilling.
More Than 4,000 Legal Fee Audits
Jim has conducted more than 4,000 legal fee audits for government agencies, corporations, and individual clients. Clients have included the U.S. Department of Justice, the State of Wisconsin, and the City of San Francisco.
He has served as an expert in state and federal courts on the reasonableness of attorneys’ fees and has been quoted in The Wall Street Journal and The National Law Journal. His work includes court-accepted audit findings and impartial reviews for insureds, insurance companies, and other clients.
Selected Audit Engagements
- Retained by investor Carl Icahn and other shareholders to review $60 million in professional fees in the United States Bankruptcy Court for the District of Delaware.
- Appointed by the District Court in Northern Mariana Islands to audit $22 million in legal fees for the estate of Larry Lee Hillblom, co-founder of DHL Express.
- Retained by the State of Hawaii, Department of the Attorney General, and the U.S. Department of Justice to audit tens of millions of dollars in legal fees.
Related Expert Witness Support
Jim also provides expert witness and consulting services in insurance bad faith and claims handling matters. This experience supports his assessment of legal billing in insurance-related disputes.
Contact Jim Schratz & Associates for a no-obligation initial review of your legal invoices.
REQUEST A CASE REVIEW
Find Out Whether an Audit Is Warranted
Request a free initial invoice review. Legal-fee audit engagements generally require at least $500,000 in fees at issue.