Iatsukha: Access to justice not well developed in small claims
An automated platform which uses generative AI to “hold the hand” of customers throughout the small claims process has secured £550,000 in its second funding round.
Michael Iatsukha, solicitor and co-founder of CaseCraft AI, said the platform used chatbots to help claimants and defendants with small claims, and if successful, charged fees of 10% of the amount claimed.
Mr Iatsukha said four co-founders “started brainstorming ideas” two years ago for which areas of the law could best be transformed by AI.
Having looked at immigration and employment law, they considered discovery before deciding that small claims was “the one area where access to justice is not as developed as anywhere else”.
Mr Iatsukha, a partner at London law firm Sterling Law, said there was “almost no ability” for people to claim the costs of small claims cases and it made “almost zero sense” to go to a law firm because of the fees.
He said that more than half of all small claims ended with default judgments, as people struggled to file an acknowledgement of service or defence.
It was also clear from phone calls received by Sterling Law that people did not know how to initiate small claims.
Mr Iatsukha and Ruslan Kosarenko, senior partner of Sterling Law, joined forces with Dmitry Bagrov, a managing director of global software firm DataArt, whose UK office he established, and fund manager Alexander Mints to found CaseCraft AI.
They have recruited Ed Crosse, a partner at City firm Simmons & Simmons and a former president of the London Solicitors Litigation Association, to act as an adviser.
Mr Iatsukha said CaseCraft had been going through a “closed testing process” with over 100 clients from Sterling Law before its launch, which is planned for later this month.
Mount Fund was the lead investor in the latest funding round. Mr Iatsukha said CaseCraft raised £500,000 in its first funding round.
CaseCraft has no full-time, employed staff, but instead uses a team of around a dozen freelance workers.
Mr Iatsukha said CaseCraft customers paid £15 for onboarding and, if successful in their case, 10% of the amount claimed.
The gov.uk website could explain how customers should progress their small claims cases but could not “hold the claimant or defendant’s hand” throughout the process.
Among the tasks that CaseCraft can perform are finalising a pre-action protocol letter and preparing and issuing the claim form.
Mr Iatsukha said that, for the time being, it could only handle cases eligible for the HM Courts & Tribunals Service (HMCTS) money claims online service, though there were plans to expand the service to other small claims.
Customers must use the free mediation phone call for small claims provided by HMCTS and CaseCraft can help them arrange it.
Laert Karaashev, head of venture capital at Mount Fund, commented: “We are proud to support CaseCraft AI in its journey to bring innovation to the UK’s small claims process.
“By making the system more accessible and efficient through cutting-edge AI, the platform has the potential to become a true champion for consumers.”
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