Arbitration remains an extremely effective mode of Dispute Resolution in Thailand. Its viability in contracts is guaranteed by the Arbitration Act B.E. 2545 (2002).
Litigation is a legal process where a judge makes a decision based on the evidence presented. However, it can be costly and adversarial for both parties.
In Thailand, arbitration is widely used as a method of dispute resolution. It is usually faster, cheaper and more confidential than a court trial. However, it is not guaranteed to be binding on the parties and can still be challenged.
Parties can submit documents, information and materials to be evaluated by tribunal-appointed experts. The experts are free to present their findings and either party may require them to attend a hearing for cross-examination. In addition, the tribunal is empowered to impose costs on the unsuccessful party.
An arbitral award is not final until confirmed by the court. There are six grounds for refusing to enforce domestic and foreign awards, including the lack of jurisdiction of the arbitral tribunal or that the award is contrary to public order and morals. Consequently, challenge proceedings often take years to complete.
In Thailand, conciliation is an alternative dispute resolution method that avoids lengthy and complex court cases. It allows disputing parties to meet with a neutral person who helps them find an acceptable solution to their dispute. Conciliation is often a more cost-effective and quicker way to settle a dispute than litigation.
It is important to remember that conciliation proceedings are confidential. Therefore, anything said or done at a conciliation conference cannot be used in any later legal proceedings. This is to ensure that both sides can have open and frank discussions.
The Alternative Dispute Resolution Office of the Thai Judiciary is responsible for conducting and coordinating both court-annexed and out-of-court mediation and offering the public legal advice on arbitration and conciliation. In addition, the office also develops the systems, methods and standards of conciliation in Thailand. The conciliation process is designed to allow for satisfactory settlements where no party is deemed the winner or loser, which creates a harmonious society while saving time and money for the courts.
The courts are an option for dispute resolution in Thailand. In court proceedings, a judge hears evidence and makes a binding judgment that is enforceable under the law. Court judgments set legal precedents, which can provide clarity for future disputes. However, the adversarial nature of litigation can damage relationships between disputing parties.
Generally, before proceeding to trial, the judiciary will ask parties to participate in a court-supervised conciliation process. Moreover, at any point during a case, a judge may facilitate or arrange for an out-of-court reconciliation by himself or appoint a conciliator to conduct closed door sessions with the parties to bring about compromise.
The court system in Thailand consists of Courts of First Instance, the Appeals Court and the Supreme Court (Dika). A party can appeal a decision at the Appeals Court or at the Supreme Court on points of law or points of facts. The Supreme Court also hears special cases that fall within its scope of jurisdiction.
Litigation is a common method of resolving disputes in Thailand, but there are several alternative options. Each has its own advantages and disadvantages, and each can be appropriate for different situations.
The courts in Thailand operate primarily under an adversarial system, with each party having the right to question witnesses on cross-examination and to rebut evidence. The law protects judges’ independence and impartiality in the trial and adjudication of cases, and allows challenges to judges who have vested interests or relationships with any of the parties to the case, if these could compromise the fairness of the trial or judgment.
The judicial system has three levels: the Courts of First Instance, the Appeals Court, and the Supreme Court. Specialised courts include the Central Intellectual Property and International Trade Court, the Tax Court, and the Bankruptcy Court in Bangkok, as well as regional labour courts across the country. These specialized courts have panels of professional judges and lay judges, recruited separately.