Insurers and third-party payors frequently retain our firm to determine whether the bills generated by outside counsel are reasonable. At times, in-house counsel and law firms also will hire us to ensure that the bills they intend to submit to insurers and other third-party payors will pass muster. There are benefits to conducting this type of prophylactic analysis: The exercise minimizes disputes arising from fee reimbursement arrangements and often facilitates more timely and reliable payments. This article will provide in-house counsel with some tips that we employ to prepare bills incurred in big-ticket litigation.
Our work in this area arises in high-profile, complex commercial litigation of all types. Once retained, we typically conduct a thorough analysis of the bills and supporting documentation generated by the outside law firms to determine if the bills will satisfy a third-party payor’s requirements.
Other elements of our analyses include a thorough review of expert reports, briefs and other work product that the various law firms generated. In major litigation, it is quite common to retain a number of firms to work on specific roles in the case or cases. Through such an effort, we often clarify the roles of the law firms involved and develop evidence as to why their roles were proper and not duplicative or unnecessary. We can assist in building a record as to why the firm was hired and why their efforts were reasonable.