About Jim Schratz and Associates

A Boutique National Practice Focused on Legal Fees and Insurance Claims

For more than 30 years, I have helped courts, insurers, and law firms evaluate the reasonableness of attorney’s fees and the reasonableness of insurer conduct in complex litigation. My practice is intentionally specialized, allowing me to focus on the issues where experience matters most.

Based in Sonoma, California and working nationwide, Jim Schratz & Associates provides three core services:

• Legal Fee Audits
• Insurance Bad Faith & Claims Handling Expertise
• Expert Witness Testimony

These areas naturally overlap. Understanding how lawyers bill requires understanding how cases are litigated. Understanding insurer conduct requires knowing what courts expect to see in the claim file. I have spent decades working on both sides of these issues, which helps bring clarity to disputes that are often complicated, high-stakes, and time-sensitive.

Legal Fee Audits with Clear Value

I have conducted more than 4,000 legal fee audits on behalf of plaintiffs, defendants, government entities, and insurers. Many courts have cited my work when reducing requested fees, sometimes by up to 75%.

To keep things practical, every engagement begins with a free file review. I look at the invoices and background of the case and let you know, candidly, whether a full audit is warranted. In roughly 15–20% of matters, I advise that an audit is not necessary.

If an audit is appropriate, I provide a not-to-exceed budget so you know your exposure before you move forward. Clients appreciate knowing that cost certainty is built in from the start.

Insurance Bad Faith and Claims Handling

Before establishing this practice, I spent 14 years as an insurance adjuster and later as a senior insurance executive at Fireman’s Fund. I supervised high-exposure claims worldwide, including matters with multimillion-dollar bad-faith risk.

That background helps me quickly evaluate:

• Whether an insurer’s actions were reasonable under industry standards
• How a claim should have been handled
• Where documentation supports (or contradicts) the carrier’s position

I have been qualified as an expert in state and federal courts across the country and have provided deposition and trial testimony in hundreds of cases involving bad faith, claim-handling standards, and insurer conduct.

Supporting Law Firms

Many law firms engage me when their fees are challenged or when they need to present a fee petition that will withstand scrutiny. I also assist firms responding to audits that rely on unsupported methodology or that fail to consider the realities of litigation.

• Preparing or opposing fee applications
• Explaining complex billing or claims issues to courts
• Evaluating opposing experts’ methods and conclusions

Because I have conducted thousands of audits myself, I know what a thorough, fair review should look like—and I help firms demonstrate the reasonableness of their work.

Nationwide Availability

Although based in California, I am retained regularly in matters throughout the United States. I have been qualified to testify in numerous jurisdictions and frequently work on multi-state disputes and complex fee litigation.

Most engagements are handled efficiently through electronic file review, video conferences, and remote collaboration, making national availability straightforward for clients.

Publications and Thought Leadership

Described by the American Bar Association Journal as a “major player in the field of legal fee audits,” I have written more than 35 articles on topics including fee petitions, insurance bad faith, conflicts of interest, and claims-handling standards. These publications are widely used by practitioners and have been cited in litigation and continuing legal education programs.

Many of these writings come directly from practical questions raised by clients—how fees should be reviewed, how claims should be documented, and how to avoid avoidable disputes.

How to Work With Us

Most matters begin with a free initial file review. If I believe a full audit or expert engagement will add value, I provide a not-to-exceed budget before any work begins.

If you are preparing or opposing a fee application, facing a bad faith claim, or addressing a dispute involving attorney’s fees or insurance conduct, I would be pleased to discuss your matter.