PRESS: Major study proposes ODR to handle small business debt cases

Press coverage in Legal Futures here, amongst other publications, about the billions that can be saved through a simple platform for SMEs to resolve late payment debt disputes in a non-adversarial way.

The article shares:

‘Each stage of dispute resolution using the platform should be subject to a “tight” timeframe of, for example, two to three weeks, with an average dispute lasting just six to eight weeks.

A statutory regime would best support a fast-track enforcement route in the civil courts, it urged, applying the principle of ‘pay first, argue later’.

Just a £3.5m initial public investment was required, which could come either from public money private equity, or a mixture of both.

LawtechUK will not be building or funding the development of the platform itself.

“Funding for the platform is not currently planned, but government backing would be a critical enabler in its initial stages, lending all important support, credibility and profile with the business community,” it said.

Professor Richard Susskind, a member of the LawtechUK panel, said: “This study offers a roadmap for the future of legal dispute resolution – an inexpensive, straightforward, online alternative to a traditional hearing but connected to the courts in case a formal judicial determination is needed.'

“The proposed system offers SMEs an easier and more affordable solution to sorting out their late payment problems. The result: greatly increased access to justice for small businesses.”

Jenifer Swallow, director of LawtechUK at Tech Nation, said the legal system should be there when small businesses needed it.

“It should not be slow, adversarial and hard to access. [The] LawtechUK study shows that technology can address this problem. Disputes can be resolved quickly and easily, and in a way that maintains business relationships.

“Delivering this online platform can help make the pain around late payments a thing of the past for SMEs.

“Our consultation on the study has been met with support in terms of the capability and approach of the platform. This is an opportunity to deliver business and justice outcomes through technology.”’