You are using an outdated browser and your browsing experience will not be optimal. Please update to the latest version of Microsoft Edge, Google Chrome or Mozilla Firefox. Install Microsoft Edge

November 19, 2025

Prelitigation Mediation in Thailand: An Early Resolution Option

Subscribe to Updates

Litigation has its place in resolving business disputes, but it is often time-consuming and costly. In Thailand, a straightforward civil case can take a year or more to reach judgment at first instance, and appeals can extend that timeline further. Court filing fees are tied to the value of the claim, typically amounting to around two percent for claims up to THB 50 million, before accounting for attorney fees, translation costs, expert work, and the internal time that management must devote to the case.

Against this backdrop, Thai law provides an alternative pathway for parties to attempt resolution before filing suit, and Thai courts commonly encourage mediation as part of the dispute-resolution process. Specifically, prelitigation mediation is a court-supervised process designed to facilitate confidential settlement discussions at an early stage. Participation is voluntary and requires the consent of both parties. The process does not replace litigation but is available in parallel as an initial step for interested parties. If the parties reach an agreement, the settlement can be recorded as a consent judgment that is directly enforceable in Thailand. If no settlement is reached, the parties retain their full right to proceed with a court claim.

Reasons to Consider Prelitigation Mediation

Prelitigation mediation can offer several advantages. It may shorten timelines from months or years to just weeks, reduce legal costs, and keep discussions confidential. It also allows parties to pursue practical, business-driven solutions or tailored remedies that address their specific needs—outcomes that may not be available through traditional litigation. To facilitate this process, under Thailand’s Civil Procedure Code, parties may petition the court to initiate prelitigation mediation before filing a suit. If the opposing party agrees, the court appoints a mediator to work with the parties under established mediation rules. In such a scenario, there are no court fees for the petition or for the mediation itself.

The true value of prelitigation mediation lies in its potential outcome. If the parties reach a resolution and enter into a settlement agreement, they can ask the court to issue a consent judgment. The court will review the agreement to ensure it is not contrary to public policy, illegal, or unfair. If approved, the consent judgment is a legally binding order with the same enforceability as a final court decision. If one party fails to comply with the agreement, the other may enforce the judgment directly against the breaching party’s assets for up to ten years from the date of the consent judgment, without filing a new claim. If no agreement is reached, the parties retain full rights to litigate.

When Can Prelitigation Mediation Be Useful?

Prelitigation mediation may be particularly effective in cases where the core issue, such as a contractual obligation or a debt, is clear but the timing or interpretation is in dispute. It can also be useful when private negotiations have stalled and a neutral mediator could help restart progress, or where one party holds assets in Thailand, making a locally enforceable outcome more practical. This process can be applied to a wide range of matters, including contractual disputes, wrongful act claims, debt recovery, international transactions, enforcement of cross-border settlements, and some types of labor issues. Even when settlement is not achieved, prelitigation mediation can provide valuable insight into the other party’s priorities and likely settlement range, which may inform subsequent litigation or arbitration strategy.

How Parties Can Pursue Prelitigation Mediation with a Legal Specialist

For parties considering dispute resolution in Thailand, engaging a legal specialist can be a very important factor in determining the strategic success of prelitigation mediation. Local practitioners who are well versed in both mediation processes and court procedures can provide guidance on the suitability of prelitigation mediation for a specific dispute.

Legal specialists should be able to provide:

  • Case assessment and strategy: Evaluating the merits of the case, readiness of evidence, asset profiles, and realistic settlement parameters.
  • Negotiation preparation: Planning approaches that encourage productive engagement while preserving leverage.
  • Documentation and presentation: Preparing petitions, briefs, term sheets, and settlement documentation suitable for conversion into a consent judgment.
  • Execution and enforcement: Assisting with court approval of consent judgments and ensuring enforceability.
  • Transition to litigation: If mediation does not lead to settlement, ensuring a seamless shift to litigation or arbitration.

Prelitigation mediation offers parties an additional, court-supervised avenue to seek resolution before commencing formal litigation. It can provide a cost-effective and confidential opportunity to settle disputes early while maintaining the right to pursue litigation if needed.  Collaborating with a legal specialist can help ensure that each stage of the process is handled in accordance with Thai legal requirements and best practices.

Related Professionals

Practices

Dispute Resolution and Litigation

Location

RELATED INSIGHTS​ 

July 23, 2025
In cross-border disputes, a recurring concern for claimants is whether they can protect respondents’ assets located in jurisdictions other than the seat of arbitration. This article explores whether Thai courts can issue interim measures, such as freezing orders, under Section 16 of the Thai Arbitration Act (2002) to support an arbitration seated outside of Thailand. Requesting Interim Measures Section 16 provides that a party to an arbitration agreement may request that the court impose interim measures, either before or during arbitral proceedings. If the court determines that it would have been able to impose such measures had the proceedings been conducted in court, it may proceed as requested. Notably, Section 16 does not limit its application to arbitrations seated in Thailand. It simply refers to “a party to an arbitration agreement,” which arguably includes both domestic and international arbitrations. Further, it allows for applications even before arbitration is commenced, provided that the arbitration is initiated within thirty days from the issuance of the order (or other period the court prescribes). A Hypothetical Scenario Consider the following scenario: Company A, incorporated in the Netherlands, and Company B, incorporated in the Cayman Islands, have entered into a contract containing a clause requiring arbitration at the Singapore International Arbitration Center (SIAC). A dispute arises, and Company A commences arbitration at SIAC. Company B holds significant assets in Thailand, such as bank accounts or real estate. Concerned that Company B might dispose of its assets before an award is rendered, Company A applies to the Thai court seeking a freezing order over those assets. Can the Thai court issue such an interim measure? The answer is not straightforward. Thai law is silent regarding whether Section 16 applies to arbitrations seated outside Thailand, leaving the door open for argument. Some academic sources suggest that
Read More
June 25, 2025
In Thailand, in-court business rehabilitation is a legal proceeding that enhances a debtor’s chance to restructure business operations for corporate debtors who are unable to repay their debts. The purpose of this proceeding is to allow the debtor to continue operating the business and generate income to repay creditors. The amounts that creditors receive in the rehabilitation proceeding are greater than the amounts creditors would receive if the debtor went bankrupt. The law is not designed to allow debtors or creditors to use the business rehabilitation process in bad faith for their benefit or to defraud another party. Accordingly, the Business Rehabilitation Law, which is included in the Thai Bankruptcy Act B.E. 2483 (1940), provides criminal liability for actions taken before or during the process. This article addresses the key points regarding criminal liability for safeguarding debtors and creditors in business rehabilitation proceedings from any parties who act in bad faith. Criminal Liability in Business Rehabilitation The following provisions establish the framework for criminal liability in business rehabilitation cases, ensuring that all parties act with integrity throughout the process. The Bankruptcy Act of Thailand B.E. 2483 (1940) provides the relevant provisions regarding the business rehabilitation process. Additionally, if a company debtor or its authorized directors are found to have committed fraud or malfeasance under the Bankruptcy Act, they can also be held criminally liable under the Penal Code or related criminal statutes. The rehabilitation process aims to help a business recover financially under the supervision of the court. When the court approves the rehabilitation plan, the court appoints a business rehabilitation plan administrator to manage and implement the process. However, if it is discovered that the debtor, its executives, or even the plan administrator engaged in illegal activities prior to or during the rehabilitation process—such as tax evasion, embezzlement,
Read More
June 13, 2025
In today’s digital age, cyberattacks have become a real threat to organizations worldwide. These attacks can range from phishing and malware to ransomware and distributed denial of service (DDoS) attacks. As the frequency and sophistication of these attacks increase, so does the importance of cybersecurity compliance. In the corporate world, compliance refers to the process of ensuring that a company and its employees adhere to all relevant laws, regulations, standards, and ethical practices—but it should not stop there. Compliance should also encompass asset recovery and disciplinary measures, which can both help organizations address incidents effectively and promote good governance. Cyberattacks are malicious attempts to access or damage a computer system or network, often carried out for financial gain, for political activism, or simply to cause disruption. For instance, a successful attack might involve an attacker creating an email address that closely resembles a legitimate one, perhaps by changing only one or two characters. That email address is then inserted into an existing conversation thread, making it appear as if the user with this email address was already part of the discussion. This tactic can easily deceive a recipient into believing the email was sent from a trusted source, thereby leading them to click on malicious links, provide sensitive information, or even make payments in accordance with the attacker’s request or instructions. Phishing attacks like these are particularly dangerous and can have a serious impact on the ongoing business of a corporation because they exploit the trust and familiarity established in the original email chain. Effective Mitigation Approaches Mechanisms for addressing the aftermath of a crisis provide important recourse to affected organizations, but effective compliance mechanisms can minimize the risk of such crises ever occurring. Companies should therefore prioritize preventative measures and implementation of effective crisis management schemes. Various legal
Read More
June 11, 2025
Thailand’s tax dispute resolution framework has undergone a significant transformation with the enactment of the Act Establishing the Tax Court and the Procedure for Tax Cases (No. 3) B.E. 2568. Published in the Government Gazette on May 27, 2025, the amended act will come into force on November 24, 2025, which is 180 days after its publication. The amended act marks a pivotal shift in the jurisdiction and procedures of the Tax Court, most notably by empowering it to adjudicate certain criminal tax cases for the first time. Background and Rationale The Tax Court was originally established in 1985 as a specialized forum to handle complex tax disputes, including those related to revenue, customs, and excise taxes. The creation of the Tax Court recognized the need for judicial expertise in tax law, given its technical and specialized nature. The latest amendment is designed to address procedural inefficiencies, modernize court processes, and align Thailand’s tax litigation system with international standards. The reform demonstrates Thailand’s commitment to enhancing the efficiency, transparency, and fairness of its tax dispute resolution mechanisms. Key Amendments and Provisions Six of the key changes in the amendment are highlighted below. Expansion of jurisdiction to criminal tax cases. The most significant change is the extension of the Tax Court’s jurisdiction to include criminal offenses under the Revenue Code, customs law, excise tax law, and other tax-related laws that may be specified by royal decree. New sections in the act explicitly grant the Tax Court authority to hear and decide criminal tax cases, so individuals and entities accused of criminal tax evasion or other tax-related crimes will now have their cases heard by judges with specialized tax expertise. The law also clarifies the Tax Court’s jurisdiction when a single act constitutes multiple offenses (some tax-related, some not) or when
Read More