Dispute Resolution in Thailand typically includes mediation and arbitration. The government promotes these measures as alternatives to court proceedings.
Business disputes can arise over many issues. These include debt collection, intellectual property disputes, shareholder disputes, and consumer disputes.
Litigation has the potential to disrupt commercial relationships and increase costs. However, it may be the most effective way to resolve a dispute in certain cases.
The courts are the traditional path for resolving legal disputes. Litigation involves a structured process where the plaintiff files a complaint against the defendant and presents a case to a judge or jury who makes a decision based on Thai law and evidence provided by both parties. However, this process can be expensive and time-consuming, so it’s important to weigh all options carefully when deciding whether to litigate or seek alternative dispute resolution.
The Thai courts are committed to improving case handling efficiency, which includes expanding the number of courts and divisions, establishing specialized court branches that adjudicate cases by expert judges under specific procedure laws, introducing online platforms for filing claims, pleadings, petitions or other documents, and offering remote access to the judiciary’s information systems. Additionally, the courts encourage alternative forms of dispute resolution and actively promote out-of-court arbitration.
To protect against fraud, it is imperative for claimants to investigate the nature and extent of the defendant’s assets in Thailand and abroad before initiating a lawsuit. This is especially true when it comes to monetary judgments, as a monetary award of limited value in the event that the defendant has little or no recoverable assets. In addition, it is best to avoid making compromises or settlement offers in advance of a trial. This is because anything written or spoken can be used against the offering party.
The mediation process, in which parties meet with a neutral mediator to work out their differences, is a powerful alternative to litigation. It allows the parties to move away from legal concepts such as fault and focus on identifying their actual needs and interests. It can also be a more cost-effective and quicker way to resolve disputes than going through the courts.
Mediation is a popular method of dispute resolution in Thailand, particularly for small claims. The costs associated with court proceedings can be much higher than the damages awarded by a judge, making mediation a more cost-effective option. However, it is still important for all parties to be prepared before participating in a mediation process. The most important preparation is to be prepared to negotiate.
While mediation is not yet widely used in courts, the Thai government has been promoting the use of ADR as part of its effort to reduce the backlog of cases and promote economic growth. The Dispute Mediation Act, which was passed in 2019, establishes an out-of-court process for resolving disputes. It is based on the UNCITRAL Model Law with additional Thai-specific provisions.
Although the effectiveness of a mediated settlement agreement in Thailand is limited by the lack of a legally recognized framework for direct enforcement, it can still be a faster and more predictable alternative to a final judgment from a local court. For this reason, it may continue to play an increasingly important role in commercial disputes in the country.
The conciliation process is a way for parties to resolve their disputes outside of court. This can be done face-to-face or via online chats and video conferences. It is a useful tool for resolving smaller claims as it can be less costly than litigating the case.
The process consists of a series of meetings with the conciliator, where both sides are given an opportunity to discuss their concerns and come up with solutions for resolving the dispute. The conciliator will usually speak to each party in private first, so they can ask questions about the process and clarify any misunderstandings. Then a joint session will occur, where both parties can present their sides of the story and answer any questions the conciliator may have.
The conciliation process has been gaining popularity in Thailand, particularly since it is often more effective than traditional litigation. In fact, some courts have made it mandatory to participate in mediation before proceeding to a witness hearing, such as in labour cases. It is also being encouraged in general civil cases, even though it is not currently required by law. Previously, judges would only order out of court mediation once the plaintiff filed a complaint. This meant that months could pass before the case was scheduled for mediation, resulting in long delays in case resolutions.
Arbitration is an alternative dispute resolution tool in Thailand, and it is a viable option for parties who have arbitration clauses in their contracts. It is quicker and cheaper than litigating through court. However, there are some restrictions on when and how a party can recover their legal costs.
The arbitration institute, TAI of the Office of the Judiciary, oversees and conducts arbitration proceedings in the country. It has a reputation for quality and efficiency. It also facilitates conciliation and mediation. TAI charges no administrative fees for its services, which makes it more cost-effective than other agencies in the country.
TAI is a member of the International Arbitration Council and has access to expert legal counsel, as well as an in-house legal department. It also provides services to foreign nationals. For example, it offers a “smart visa” to arbitrators and special work permits to lawyers to enable them to stay in the country until the end of the proceedings.
In addition, TAI has recently amended its rules to allow an arbitrator to make a cost order that is more commensurate with actual legal costs (whereas the courts in Thailand typically only make nominal costs orders leading to a fraction of actual costs being recovered). This is a major milestone for arbitration in the country.