Contxto – Consider yourself lucky if you have never lost luggage or been stranded in an airport due to a flight cancellation or delay. This is an everyday reality for travelers, many of whom could file lawsuits but don’t because of lack of knowledge, resources or time.
To ease this burden, Brazilian lawtech startup LiberFly has developed a solution. News recently broke that the company intends to incorporate a bot system for customers while also planning domestic and international expansions.
Legal assistance to the rescue
With modern lawtech technology, LiberFly simplifies and expedites the process of filing small claims lawsuits in Brazil. Ari Moraes, Gabriel Zanette and César Ferrari developed the concept to ease the legal process of pressing charges against airlines, whether for lost luggage, overbooking, delays or cancellations.
“The process is bureaucratic in Brazil,” said Moraes. “It almost always requires hiring high priced lawyers. Thus came the idea of facilitating this path.”
Acting as a paralegal of sorts, this startup is the intermediary between plaintiffs and companies in hot water. LiberFly will then analyze the case and determine whether it’s viable to pursue before requesting more information.
Passengers must also file complaints within five years of the incident. Results and turnaround times vary.
“We have some case where we made it in less than 48 hours,” added Moraes, whose company works with a partnering office that directly negotiates with airlines. “Others take an average of four to six months.”
If successful, people can earn an average indemnity between R$2,000 to R$12,000 for airline damages. Customers then pay a 30 percent compensation fee to LiberFly if their case is successful in court.
However, the startup covers the costs if the case fails. How it manages to stay afloat as a company is beyond me if they’re covering court fees for failed attempts.
There is even an expedited process for clients wanting immediate results. If LiberFly approves the case, customers can receive compensations in less than two days to resolve their issue. Again, LiberFly embraces this risk. If successful, though, the lawtech startup earns the full amount of the legal reimbursement.
Over the years, this company has resolved over 3,000 cases surrounding domestic and international flights gone astray. Moving forward, it will implement a bot system to better serve customers while also expanding operations in Brazil as well as other countries.
“We have a global vision,” said Moraes. “We are focused on gaining scalability to enter new markets, starting with Spain.”
Nowadays, Lawfly receives around 1,500 calls a month, anticipating to reach 5,000 by the end of 2019. According to Brazilian law, passengers have the right of material assistance in case of cancellations, delays, overbooking or lost luggage.