Annecto Legal: SMEs Missing out on Billions in Damages Because They Cannot Afford Day in Court

LONDON--()--SMEs have missed out on an estimated £172,000 in damages each, equivalent to around £250 billion across the UK, in the last five years through unpursued commercial litigation. That’s according to new research by Annecto Legal, a free service helping businesses realise commercial litigation claims.

“This research confirms our belief that all too often SMEs are put off pursuing justice because they feel bullied by big companies; are worried about the cost of court; and are unsure they could win.”

The research revealed that almost 30% of SMEs felt bullied by a larger company, and close to a third haven’t pursued legal action because of fears about cost, time taken, and the consequences of losing.

The survey found that only one in five businesses have been involved in litigation, with almost half saying they had to finance their case on a costly hourly rate basis.

Regional headlines

London

  • 66% of businesses have not pursued a potential legal case
  • SMEs estimate they have lost out on an average of £ 279,260 in damages
  • 52% have felt bullied by a larger company

East

  • 34% of businesses have not pursued a potential legal case
  • SMEs estimate they have lost out on an average of £ 164,000

Midlands

  • 19% of businesses have not pursued a potential legal case
  • SMEs estimate they have lost out on an average of £ 197,334

North East

  • 43% of businesses have not pursued a potential legal case
  • 36% have felt bullied by a larger company

North West

  • 24% of businesses have not pursued a potential legal case
  • SMEs estimate they have lost out on an average of £ 165,385

Northern Ireland

  • 10% of businesses have not pursued a potential legal case
  • 20% have felt bullied by a larger company

Scotland

  • 26% of businesses have not pursued a potential legal case
  • 15% have felt bullied by a larger company

South East

  • 23% of businesses have not pursued a potential legal case
  • 27% have felt bullied by a larger company

South West

  • 30% of businesses have not pursued a potential legal case
  • SMEs estimate they have lost out on an average of £ 119,375

Mark Beaumont, co-founder of Annecto Legal, says:

“This research confirms our belief that all too often SMEs are put off pursuing justice because they feel bullied by big companies; are worried about the cost of court; and are unsure they could win.”

Full results can be found here.

-ENDS-

Contacts

TopLine Comms
Charlotte Ward
+44(0)207-580-6502
annecto@toplinecomms.com

Release Summary

New UK-wide research reveals the financial impact of not pursuing a litigation claim is costing British businesses £250 billion.

Annecto Legal