Disputes in Thailand can arise from many different factors. The nuances of dispute resolution in this market require experienced counsel.
Analytics’ team has extensive experience in litigation and dispute resolution in Thailand. Our lawyers will assess the facts of your case and formulate an appropriate strategy for your business.
Alternative dispute resolution in Thailand includes out-of-court arbitration and court-supervised mediation. The country is a signatory to the 1958 New York Convention, which facilitates enforcement of arbitral awards.
Commercial Disputes
Disagreements and conflict are an integral part of any business venture. However, when they involve commercial activities, they can impede business progress. In Thailand, such disagreements are called commercial disputes and they occur in a variety of forms.
Common commercial disputes include contract breach issues, real estate matters, and intellectual property infringements. Litigation, a process where a judge renders a judgment based on evidence presented during a trial, is one of the most common ways to settle such disputes.
However, litigation is a costly and time-consuming option. Moreover, it sets legal precedents that can affect future dispute resolution. As a result, alternative dispute resolution methods have been increasingly promoted by the Thai government. Mediation is a popular choice for dispute resolution as it provides parties with flexibility and cost savings. However, its effectiveness has been limited by the lack of awareness among prospective litigants. Moreover, the rules and regulations for mediation in Thailand are not consistent with international arbitration standards.
Intellectual Property Disputes
Intellectual property rights such as trademarks, patents and copyright provide important protection for business in Thailand. While Thai law protects these rights, counterfeiting and piracy are prevalent and enforcement is a challenge.
Those involved in IP disputes have the option of using civil litigation, criminal prosecution or private mediation for out-of-court dispute resolution. Civil litigation is expensive, time-consuming and requires strong evidence of infringement and commercial prejudice. Criminal proceedings may result in fines and imprisonment.
Out-of-court arbitration can be administered by selected arbitrators under the rules of the Thai Arbitration Institute, THAC, and the International Chamber of Commerce. The arbitration process is confidential, time-consuming and the costs can be significant depending on the rules chosen. However, arbitration awards are binding and enforceable in Thailand. As a signatory to the 1958 New York Convention on the Enforcement of Arbitral Awards, foreign judgments are effectively enforced in Thailand. For some cases, the judge in a trial has the option of administering conciliation during the course of a case.
Contract Disputes
Disagreements between businesses are a normal part of business life. When these disagreements involve commercial activity, they are classified as commercial disputes and can jeopardise the success of a company. Legal representation can assist in understanding rights and obligations, navigating the legal process, and achieving a positive outcome.
Labour Disputes: The terms and conditions of employment and issues such as compensation, overtime payment, and workplace relocation can give rise to labour disputes. In addition, differences in cultures can create complexities.
In Thailand, civil cases are typically resolved through the Court of Justice unless they fall within the jurisdiction of a more specialised court. Alternative dispute resolution is also available, namely mediation or arbitration, both of which are regulated by the CPC and the Arbitration Act B.E. 2545 (2002) respectively. Judges have the ability to conciliate matters at any point in a trial and can also conduct closed door sessions with parties to bring about reconciliation.
Arbitration Disputes
In Thailand, arbitration is a common form of dispute resolution, especially in the energy, mining and infrastructure industries due to the high number of cross-border transactions. In such cases, an arbitration clause is typically stipulated in the relevant contract. The Thai Arbitration Act governs domestic and international arbitration proceedings in Thailand.
In contrast to litigation, where a judge renders a final judgment, an arbitral tribunal decides upon the merits of a case in accordance with the rules set out in the arbitration law. In this context, it is important to select an arbitrator or panel of arbitrators with specific expertise in the subject matter of a dispute. Arbitral awards are typically enforceable in courts throughout the country.
As an alternative to arbitration, disputes can also be settled through negotiation or mediation. In the latter, a neutral mediator facilitates discussion between disputing parties to arrive at an acceptable compromise solution. Mediation is often offered by the court or by outside organisations such as the Thai Mediation Center.
