A lawsuit after termination costs a lot and takes a long time. That is why one company is now offering an alternative - supported by an initiative of the Bavarian Ministry of Justice and UnternehmerTUM.

• Fewer and fewer people are asserting their rights in court: According to the Federal Office of Justice, the number of lawsuits filed with the labor courts has fallen by 59% since 1995.
• The process in court takes several months and quickly costs a four-figure sum. Everyone has to pay their own lawyer's fees - even if they win.
• Suitcase has developed an innovative process that settles disputes over severance pay in just a few days and costs up to 80% less.
• The company wants to help the overburdened courts and empower people to enforce their rights themselves.
• Employers also benefit, as they also save costs and quickly receive a legally secure solution.

Parties reach agreement faster with blind bids

Suitcase's procedure does not examine whether the termination is legal; the courts are responsible for this, it says. Instead, the start-up focuses on the interests of the parties: What would the employee accept to avoid going to court? What would the employer be prepared to pay to avoid being sued?

To ensure that both sides make honest offers, Suitcase relies on confidentiality: only the system knows the sums and compares them with an algorithm. If an agreement is reached, Suitcase delivers the appropriate contract. This settles the conflict in a legally secure manner. This process usually only takes a few days - in court it takes several months.

Platform can be used without a lawyer

Suitcase has set itself the goal of helping as many people as possible to obtain their rights. Employees can open a case without any knowledge of the law. This eliminates the need to go to a lawyer. "Tax software helps us to get money back from the tax office quickly and easily without a tax consultant. With Suitcase, you can resolve your legal dispute without a lawyer. If you feel better advised, you can of course consult a lawyer," says co-founder Tim Kniepkamp.

Suitcase is currently researching the use of artificial intelligence and has applied for a patent for this. In future, the parties' documents will be analyzed automatically. This will allow the employee to open the case with just a few clicks and the parties will be supported in finding a fair compromise. "Artificial intelligence is already helping to detect illnesses at an early stage. In the future, it will help people to resolve their legal disputes quickly and easily," explains co-founder Philipp Hertel (28).

Digital dispute resolution is new in Germany

Digital dispute resolution has been around in the US since the early 2000s. The US provider Cybersettle alone has successfully resolved over 200,000 legal disputes. "We were immediately impressed and saw the potential for the German legal market," says co-founder Tim Fischer (26).

Dr. Norman Koschmieder, head lawyer at energy company Enpal, joined Suitcase as a founding partner in 2021. The young founders are also supported by a committee of experienced advisors and tech entrepreneurs. A renowned commercial law firm from Berlin has reviewed the legal concept.

About the start-up

Suitcase GmbH is a legal tech company based in Munich. The start-up secured initial funding through the Heinrich Heine University's start-up grant. The team also receives support from the Technical University of Munich, which has accepted them into the UnternehmerTUM cadre forge. Here they work in the Legal Tech Colab - an initiative of the Bavarian Ministry of Justice. A successful financing round was completed in October 2023. In the run-up to market entry, Suitcase was able to acquire two leading German legal expenses insurers and two renowned law firms as customers. The initial focus is on conflicts in employment law following termination and the repayment of rental deposits.