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

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 INSIGHTS​ 

June 10, 2026
For multinational franchisors operating in Thailand, a key risk after franchise termination is that former outlets may continue operating in ways that could easily mislead consumers into believing they remain within the authorized network. To justify such operations, former franchisees often argue that the termination was invalid or ineffective. As a result, these cases are often treated as contractual disputes, making it difficult for franchisors to obtain injunctive relief before a final judgment confirms that the termination was lawful. Franchisors face significant commercial and reputational harm during lengthy proceedings, including consumer confusion, disruption to franchise restructuring, and damage to brand reputation and customer trust. In an encouraging development, the Thai court in a 2025 case responded to the problem of unauthorized post-termination franchise operations by granting interim relief, recognizing broader brand and consumer harm, and awarding substantial damages, highlighting a successful litigation strategy of framing the dispute not merely as a contractual termination issue but as trademark infringement causing ongoing commercial injury. The Subway Case From December 2024 to mid-2025, an unauthorized “Subway®” franchise operation in Thailand attracted substantial public and media attention. Reports and online discussions about unauthorized Subway® stores circulated widely after complaints arose about food quality and customer experience at certain outlets that were allegedly operating after their franchise rights had expired. Because these stores continued to use Subway® trademarks, trade dress, and overall commercial appearance, many consumers were unable to distinguish them from authorized operations, resulting in reputational risks and customer confusion that affected the franchisor’s brand and franchise system in Thailand. Subway treated this matter with the utmost seriousness and moved promptly to protect its brand, franchise system, and customers. It filed a civil action with the IP&IT Court seeking a permanent injunction and damages. During the proceedings, the court granted a preliminary injunction
May 25, 2026
Thailand published new rules on May 1, 2026, establishing clear procedures for how the Anti-Money Laundering Office (AMLO) handles digital assets seized during criminal and money laundering investigations. Taking effect the following day, the Regulation of the Anti-Money Laundering Board on the Custody and Management of Seized or Frozen Assets (No. 3) B.E. 2569 applies to digital asset businesses, cryptocurrency holders, and anyone subject to asset seizure under Thailand’s anti-money laundering laws. For the first time, authorities now have a detailed roadmap for transferring seized digital property from private or foreign control into secure state custody. Digital asset businesses holding customer assets under investigation must be prepared to comply with these rules compelling repatriation of such assets in enforcement actions. Expanded Definition of Digital Assets The regulation defines digital assets to include not only those covered by Thailand’s existing digital asset business law but also any other property that can be stored using the same methods as digital assets. This broad formulation means the custody rules will apply to emerging blockchain-based assets and tokenized property that may not yet fall within the statutory definition of a digital asset business, giving authorities flexibility as the technology evolves. Mandatory Transfer to Domestic Custody When digital assets are held with service providers outside Thailand, AMLO will first attempt to transfer them to an account the office maintains with a licensed domestic digital asset business operator. If the domestic operator does not support that particular asset, the office will instead move the assets to its own cold wallet (offline, internet-isolated storage system). If neither option is feasible, the seizing official will report the situation to the Anti-Money Laundering Committee for alternative instructions. A similar hierarchy governs assets held in an accused party’s private wallet or by any third party that is not a
April 29, 2026
Is arbitration only as good as the arbitrator? Undoubtedly. Choosing an arbitrator is therefore one of the most pivotal decisions a party makes in the arbitration proceedings. In practice in Vietnam, many arbitration proceedings have been significantly prolonged because of multiple unsuccessful appointments arising from conflicts of interest, challenges by the opposing party, or subsequent unavailability. In other cases, additional expenses were incurred where appointed arbitrators were located far from the hearing venue or were unfamiliar with the arbitration language or applicable law. To preempt these issues and secure a more efficient and cost-effective appointment, this article proposes a practical, step-by-step approach to arbitrator selection. Step 1: Know Your Own Case At the outset, it is essential to develop a clear understanding of the dispute by addressing the following key considerations: Nature of the dispute: From which sector does it arise (e.g., construction, international trade, investment, banking and finance, technology, intellectual property)? Value and complexity: Is the dispute high or low in value? Does it involve multiple parties, multiple legal systems, or foreign elements? Is its crux related to multiple legal matters? Existing arbitration agreement: Does the agreement specify the seat, language, and governing law? If not, what would be appropriate considering the parties’ conduct and the applicable arbitration rules? Having clear answers to these questions in mind will help identify, from the outset, the core criteria for selecting an appropriate arbitrator. Step 2: Form Your Candidate Pool Based on the understanding developed in Step 1, a candidate pool should be formed through a structured and careful process: Researching Arbitrator Profiles At the initial stage, comprehensive research should be conducted via reliable sources to ensure both accuracy and diversity of candidates. Official sources, such as lists of arbitrators published by arbitral institutions, most notably the Vietnam International Arbitration Centre
March 13, 2026
For decades, intellectual property rights holders seeking to eliminate counterfeit goods from the Thai market have relied primarily on criminal raid actions to seize infringing products and hold infringers accountable. The deterrent value of this approach is typically threefold: imposing criminal liability on infringers, removing counterfeit goods from circulation, and subjecting violators to imprisonment and fines. However, these outcomes often fall short of fulfilling brand owners’ broader objectives. In many cases, those prosecuted are merely staff or intermediaries rather than the principals orchestrating the infringing operations. Moreover, any fines imposed are remitted to the Thai government—not to the rights holders who have suffered commercial harm and invested substantial resources in investigation and coordination with law enforcement authorities. As in other jurisdictions worldwide, rights holders seeking monetary compensation for IP infringement in Thailand have traditionally pursued separate civil litigation. Before initiating such proceedings, a brand owner must gather sufficient evidence to establish both the infringement and the resulting damages. Notably, Thai law does not recognize punitive damages; courts award only actual damages proven by the claimant. In the absence of seized infringing goods, the damages awarded in such cases are typically minimal. This all leaves rights holders with limited recourse despite possibly having suffered significant commercial injury. In 2005, Thailand amended its Criminal Procedure Code to introduce Section 44/1, which enables rights holders to claim damages within criminal proceedings at the Intellectual Property and International Trade Court prior to the evidentiary hearing. In practice, this mechanism allows an injured party to submit a petition for civil damages directly within the criminal case initiated by the public prosecutor. Historically, rights holders in Thailand have been reluctant to use Section 44/1 because the compensation awarded by courts was often insufficient to justify the effort. However, recent years have seen a notable shift