Mediation & Alternative Dispute Resolution

Mediation and Alternative Dispute Resolution

Mediation in Thailand: A Key Dispute Resolution Tool in Litigation

When disputes arise in Thailand, there are three primary ways to deal with it, namely Litigation, Arbitration and Mediation.  Mediation offers a cost-effective, confidential, and efficient alternative to prolonged litigation. As a vital part of Thailand’s legal framework, mediation is often integrated into the litigation process to resolve conflicts swiftly while preserving business relationships. At Formichella & Sritawat, our expert mediation services, backed by over 65 years of combined legal experience, help clients navigate disputes with tailored, results-driven solutions.

What is Mediation in Thailand?

Mediation is a voluntary, non-binding process where a neutral third party facilitates negotiations between disputing parties to reach a mutually agreeable solution. Governed by the Dispute Mediation Act B.E. 2562 (2019), mediation in Thailand is widely used in civil, commercial, family, labor, and intellectual property disputes. Unlike litigation, mediation emphasizes collaboration, confidentiality, and flexibility, making it ideal for resolving conflicts without the time and expense of court proceedings.

How Mediation Integrates with Litigation in Thailand

In Thailand’s legal system, mediation is often a mandatory or encouraged step during litigation, particularly in the Courts of First Instance. Here’s how it typically unfolds:
  1. Pre-Trial Mediation: Under the Civil Procedure Code (CPC), courts may require parties to attempt mediation before proceeding to trial, especially in labor, family, or small claims cases. This is facilitated by court-appointed mediators or institutions like the Thailand Arbitration Center (THAC) or the Alternative Dispute Resolution Office.
  2. Court-Supervised Mediation: During litigation, judges may pause proceedings to encourage settlement discussions. Mediators, often trained legal professionals, help parties explore solutions in a private setting, ensuring confidentiality under Thai law.
  3. Settlement Agreements: If mediation succeeds, parties sign a legally binding settlement agreement, enforceable as a court judgment. If it fails, litigation resumes without prejudice, as mediation discussions are inadmissible in court.
  4. Post-Trial Mediation: Even after a trial begins, courts may encourage mediation to avoid lengthy appeals, especially in commercial disputes involving high-value transactions.
This integration reduces court backlogs, with mediation resolving disputes in weeks or months compared to litigation’s 1.5–2-year timeline.
Benefits of Mediation in Thailand
  • Cost-Effective: Mediation typically incurs lower legal fees than litigation, saving time and resources.
  • Confidential: Discussions remain private, protecting sensitive business or personal information.
  • Preserves Relationships: The collaborative nature fosters goodwill, ideal for ongoing commercial partnerships.
  • Flexible Solutions: Parties can craft creative agreements beyond what courts can order.
  • Speed: Mediation can resolve disputes in days or weeks, unlike litigation’s lengthy process.
Common Disputes Suitable for Mediation
  • Commercial Disputes: Contract breaches, fraud, or non-delivery of high-value goods.
  • Corporate Issues: Shareholder disputes or partnership conflicts.
  • Labor Disputes: Employee-employer disagreements, often mandated for mediation under Thai labor law.
  • Family Matters: Divorce settlements or inheritance disputes.
  • Intellectual Property: Copyright or trademark conflicts, often handled via specialized courts.
Don’t let disputes drain your time and resources. Let Formichella & Sritawat guide you through mediation to resolve conflicts efficiently and effectively. Contact us for a free consultation at [email protected] or call +66 2107 1882.
Formichella & Sritawat: Your Trusted Partner for Mediation and Dispute Resolution in Thailand