Litigation is usually the last resort in resolving disputes. Most parties to a dispute try to avoid litigation altogether, fearing that seeking recourse with the courts or arbitration will lead to a disruption in commercial relationships, result in increased legal expenses, and generally lengthen the period in which the dispute remains unresolved. While some of these concerns may indeed be legitimate, sometimes litigation is the only means for a party to obtain relief. For parties contemplating such recourse, it is reassuring to know that the Thai court system is generally an accessible, unbiased, and balanced vehicle for the resolution of disputes. Civil Litigation in Thailand aims to introduce some of the fundamentals of Thai civil court procedures and practices. This brief guide covers the main issues concerning civil litigation in Thailand as either a plaintiff or a defendant. The full guide is available through the button below.

In-court arbitration is an alternative dispute resolution (ADR) tool provided in the Civil Procedure Code (CPC) for cases that have already been submitted to the court. Historically, in-court arbitration has not been a popular method of resolving disputes. Instead, out-of-court arbitration, as prescribed by the Thai Arbitration Act B.E. 2545 (2002), is far more utilized in practice. The popularity of out-of-court arbitration is demonstrated by the fact that presentations on arbitration in Thailand almost exclusively focus on out-of-court arbitration; in-court arbitration is rarely even a topic of discussion. This situation is partly because in-court arbitration has not been encouraged by the courts in the past. Further, it is also not common for parties to agree on arbitration clauses after a dispute arises and also after it has been submitted to the court. Instead, arbitration clauses are generally discussed and crafted during the negotiation of the contract, which will most likely provide that any dispute arising out of the contract is to be resolved by out-of-court arbitration. Nonetheless, the Thai Courts of Justice have recently started to support this in-court ADR tool as a viable option and to encourage parties to agree in-court arbitration clauses before proceeding with a case through trial. This article is not meant to assess whether in-court arbitration is preferable to either out-of-court arbitration or to having the case heard by professional judges of the Courts of Justice. Instead, the purpose of this article is to discuss certain key provisions of the CPC that parties should carefully consider before agreeing to an in-court arbitration clause. On this point, the CPC specifically states that out-of-court arbitration is prescribed by arbitration law, the Arbitration Act, which is an entirely separate piece of legislation drafted specifically to apply to out-of-court arbitration. In contrast, in-court arbitration is completely regulated by

Intellectual property rights holders pursuing legal actions in Vietnam have faced various challenges related to document formality in recent years. For example, in two different disputes at the Ho Chi Minh City Court, we have seen the judge request the claimants to re-prepare the civil dossier due to a lack of documentation proving the authorization of the signer—despite the fact that the cases had been ongoing for long time. Meanwhile, many domain names have been unable to be registered and transferred in recent months. Third-party representatives cannot handle the work as they normally would, as Vietnam’s domain name authority has required all documents to be signed by the domain name holders themselves, instead of the law firms representing them. Such demands have created unnecessary complexities and obstacles for IP holders seeking to protect their rights in Vietnam. Legal Formalities in the Court System Vietnam’s judicial landscape presents unique hurdles for IP holders to enforce their rights. One significant challenge is the requirement for the claimant’s legal representative (typically the CEO/president), as explicitly displayed on the company’s business license, to sign all documents related to a lawsuit. This requirement clashes with the operational practices of many foreign companies, where multiple individuals may have the authority to represent the company. It is extremely impractical, especially in a large multinational conglomerate, for the CEO/president to personally execute all documents and transactions. Instead, authorized staff within these organizations, such as department heads or general counsel, typically handle these tasks. In this situation, Vietnamese courts often demand additional documentation to prove the officers’ authority, necessitating specific authorization documents that may not always be readily available. The courts sometimes remain unconvinced by declarations from the CEO/president affirming the authorization of these officers, and despite such assurances, they may still demand tangible proof of authorization, adding

On April 10, 2024, new minimum wage rates for workers in certain hotels in Thailand were published in the Government Gazette, taking effect on April 13, 2024. Under the Notification of the National Wage Committee on Minimum Wage Rate for the Hotel Industry, the new minimum wage rate is THB 400 per day, applicable to employees working in four-star (and above) hotels that have at least 50 employees and are located in the following specific areas: Bangkok: Pathumwan and Wattana districts Krabi: Ao Nang Subdistrict Administrative Organization areas Chon Buri: Pattaya city Chiang Mai: Chiang Mai municipality Prachuap Khiri Khan: Hua Hin municipality Phang-nga: Khukkhak sub-district municipality Phuket: Whole province Rayong: Phe subdistrict Songkhla: Hat Yai municipality Surat Thani: Koh Samui municipality Rationale The increase in the minimum wage is to drive and stimulate the economy in Thailand’s tourism industry, which is critical to the overall economy of the country. The ten areas identified above are those that earn a significant portion of their revenue from tourism. The decision underwent a public hearing process involving stakeholders. Although there were objections from some hotels claiming they were not yet ready to bear the increased costs, the law was enacted, taking effect on April 13, 2024. For more information on Thailand’s minimum wage regulations, or on any aspect of employment law in Thailand, please contact Pimvimol (June) Vipamaneerut at [email protected], Ketnut Pukahuta at [email protected], Dusita Khanijou at [email protected], or Chomanut Arif at [email protected].