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

October 24, 2025

Toward a Hybrid Future: Arbitration-Annexed Mediation at the Thai Arbitration Institute

Subscribe to Updates
The Legal Industry Reviews

The Thai Arbitration Institute (TAI), a division of Thailand’s Office of the Judiciary, has taken a step toward harmonizing the tools available for dispute resolution. On August 8, 2025, the institute formally launched the TAI Mediation Center (TAI-MC). Although the amendments to TAI’s Arbitration Rules that will govern the TAI-MC have not yet been finalized, the framework now under consideration suggests that TAI is positioning itself to become a more attractive venue for commercial dispute resolution.

In the regime contemplated under the current version of the amendments, TAI proceedings will adopt an “arbitration-annexed mediation” mechanism—commonly termed the “Med-Arb” model—while preserving the procedural safeguards indispensable to arbitral neutrality. Mediation will be entrusted to a separate, dedicated mediator appointed under the TAI-MC who is precluded from serving on the arbitral tribunal in the same matter. By clearly separating the functions of mediator and arbitrator, the institute eliminates any risk that confidential information disclosed during mediation could influence the adjudicatory outcome if the parties do not settle. Only when all parties subsequently make a request may that same mediator assume arbitral duties in the case.

The parties will retain substantial autonomy in selecting the mediator. They may either designate a mediator by mutual consent or invite the TAI-MC to appoint one from its authorized panel. TAI has announced its intention to curate that panel with particular emphasis on commercial expertise and cross-cultural negotiation skills, supplemented by ongoing professional training. Where the parties cannot agree on remuneration, the mediator’s fee will default to a tariff comparable to the TAI-MC’s cost schedule, which under the current version of the amendments will be approximately THB 45,000 for disputes in which the aggregate claims do not exceed THB 10 million, with incremental increases tied to higher claim values. This predictable cost matrix is aimed at enhancing transparency and budgeting certainty, two concerns frequently cited by counsel when selecting an ADR provider.

Any settlement reached in mediation may be rendered, at the parties’ election, into a consent award signed by the tribunal. Such an award is enforceable under Thailand’s Arbitration Act B.E. 2545 (2002) and, by extension, under the New York Convention, to which Thailand is a party. The prospect of combining the flexibility of mediation with the enforceability of an arbitral award is expected to resonate with foreign investors who have the objective of having such awards enforced in Thailand and elsewhere.

TAI’s initiative mirrors a broader international trend. By integrating a standalone mediation facility into its existing arbitration infrastructure, TAI is signaling that Thailand intends not merely to catch up but to compete for a share of the region’s burgeoning cross-border caseload.

Several practical issues remain open. The draft amendments must address the confidentiality interface between the mediation and arbitration phases, the precise triggers for initiating annexed mediation, and the mechanics for recommencing arbitral hearings if mediation fails. Nonetheless, discussions at the opening event of the TAI-MC suggest that users will enjoy flexibility in sequencing (for example, whether mediation should occur before any substantive hearing or during trial) and that tribunals will be encouraged to adopt pragmatic case management techniques to avoid delay. Once these measures are in place, parties drafting arbitration clauses that designate TAI as the administering institution will have the ability to secure both consensual and adjudicative outcomes within a single, integrated framework.

 

This article was first published in the October 2025 Thailand edition of The Legal Industry Reviews, an international platform that publishes news and applied law updates from industry-leading law firms worldwide. To browse the latest complete issue, please visit The Legal Industry Reviews website.

Related Professionals

Practices

Dispute Resolution and Litigation

Location

RELATED INSIGHTS​ 

December 15, 2023
As part of its membership in Lex Mundi, Tilleke & Gibbins has published an updated edition of its Guide to Doing Business in Thailand for 2023. This guide outlines the key factors for starting and operating a business in the Thai market. Issues covered include: Investment incentives Financial facilities Exchange controls Import and export regulations Structures for doing business Requirements for the Establishment of a Business Operation of the Business Cessation or Termination of the Business Labor legislation, relations, and supply Tax Immigration requirements This publication is part of Lex Mundi’s Country Guides series prepared by member firms in more than 100 jurisdictions worldwide. The guides serve as a useful resource for planning international business strategy and researching new markets. The full Guide to Doing Business in Thailand is available through the button below.
Read More
December 13, 2023
Thailand’s economy in recent years has felt the impact of a seemingly endless list of challenges, such as the COVID-19 pandemic, global economic recession, repercussions from wars and armed conflicts, slumping exports, and recurring internal political turmoil. Many Thai companies simply went bankrupt during this time, but many others have gone through the process of business rehabilitation as laid out in Thailand’s Bankruptcy Act. This article outlines Thailand’s business rehabilitation procedures and explains how creditors can collect debts from companies involved in rehabilitation. Business rehabilitation in Thailand Under the Bankruptcy Act, a creditor, debtor, or government agency under certain circumstances can file a business rehabilitation petition when all of the following conditions are met: The debtor is insolvent or unable to pay the debt due for payment (cash-flow insolvency). The debtor is a juristic person indebted to one or more creditors for a total of at least 10 million baht. The debt can be determined in a definite amount, irrespective of whether it is due for payment immediately or in the future. There is a reasonable prospect of the debtor’s business being rehabilitated. “Insolvency” means a debtor has more debts than assets. However, the Bankruptcy Act also gives some criteria for being able to assume that a debtor is insolvent. Examples include debtors declaring to the court that they are unable to pay their debts, or debtors defaulting on debt payments after receiving at least two demand letters from a creditor (with at least 30 days between the letters). Once the court receives a business rehabilitation petition, the debtor will be protected under an “automatic stay.” This means that any creditor cannot sue or force the debtor to pay a debt, and the debtor is not allowed to pay any debt unless it falls into one of the exceptions
Read More
November 3, 2023
Vietnam’s new Law on Protection of Consumer Rights No. 19/2023/QH15 (CPL 2023) was promulgated by the National Assembly on June 20, 2023, and will replace the existing Law on Protection of Consumer Rights No. 59/2010/QH12 (CPL 2010) when it enters into effect on July 1, 2024. The main points of interest of the CPL 2023 are summarized below. 1. Definition of Consumer Under the CPL 2023, a consumer is defined to be “a person who purchases and/or uses products, goods and services with the aim of consumption for daily needs of individuals, families, or organizations, and not for commercial purposes” (Article 3.1). Compared to the CPL 2010, this definition introduces the phrase “and not for commercial purposes” to emphasize the exclusive focus on the consumption of goods and services. However, the CPL 2023 retains the use of the term “person” for defining a consumer, leading to uncertainty regarding whether an organization or a family can qualify as a consumer. Similarly, the CPL 2023, as in the CPL 2010, maintains an ambiguous comma between “purchase” and “use,” so it remains somewhat ambiguous whether purchase (without use) or use (without purchase) of goods/services is sufficient to qualify as a consumer under the law. 2. Vulnerable Consumers The CPL 2023 introduces a new concept known as the “vulnerable consumer.” This term pertains to a consumer who, at the time of purchase or use of products/services, is potentially subject to various adverse situations in terms of information access, health, property, or dispute settlement. This category encompasses individuals such as the elderly and disabled, children, ethnic minorities, people of remote or economically difficult regions, pregnant women and breastfeeding mothers of infants under 36 months, individuals with severe illnesses, and members of poor households (Article 8.1). The rights and privileges of vulnerable consumers must be
Read More
October 30, 2023
A Resounding Victory The last days of October brought some excitement for one of the leading pharmaceutical companies in the world, Novartis, when its patent litigation case in Vietnam against a local generic manufacturer, which had stretched over more than eight years, finally came to an end. The background of this case is quite simple. Novartis was the owner of a patent protecting the active ingredient vildagliptin, which was commercialized through its Galvus® product, a medicine used to treat type 2 diabetes. In 2015, the company found that a drug manufacturer in Vietnam’s Binh Duong province on the outskirts of Ho Chi Minh City was producing a medicinal product containing the vildagliptin active ingredient—an infringement of its patent. Novartis first submitted a request to the Ministry of Science and Technology (MOST) to apply administrative sanctions on this infringer. Subsequently, the MOST Inspectorate concluded in July 2015 that the defendant had committed patent infringement and ordered them to stop producing the infringing drugs and recall them from the market. However, the defendant did not comply with the conclusion, and sought an appeal while it continued to produce the infringing medicine. Realizing that administrative sanctions were not strict enough to deter the defendant, Novartis continued to protect its legitimate rights and interests by initiating a lawsuit at the provincial court where the defendant was headquartered, Binh Duong. Novartis claimed that the defendant had infringed the patent and requesting the defendant to compensate for damages at the highest level allowed by law, pay attorney fees, and publicly apologize to Novartis in specialized newspapers. This began a long journey full of challenges that finally ended with the second appellate judgment declared by the High People’s Court of Ho Chi Minh City on October 17, 2023. The court accepted all claims raised by the
Read More