Business Law & Compliance

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Legal fees scare SMEs off litigation

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A survey from legal advice firm Annecto Legal has found that British SMEs feel bullied when they think of taking up legal proceedings, and this intimidation makes them drop the case.

The estimation of money in damages lost by this behaviour averaged £172,000 per firm.

20 per cent of firms surveyed had been involved in a litigation.

“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 that they could win,” Mark Beaumont, co-founder of Annecto Legal, said.

“The extent to which small and medium-sized businesses feel bullied by big companies is astounding, with more than a quarter saying they have felt this way. Despite this, almost a third haven’t pursued a potential legal case in the last five years due to underlying fears.”

The main reasons listed for not pursuing legal action was expense, time consuming and uncertainty fear over winning the case.

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