Alternative dispute resolution (ADR) services, including arbitration and mediation, have become well established in Thailand by the country’s judiciary. These mechanisms are meant to provide for the resolutions of conflicts, on an out-of-court basis, for companies of all sizes and nationalities doing business in Thailand. This is a significant benefit to foreign investors as it provides them with an internationally-recognized means of settling a dispute without having to pursue the matter in an unfamiliar legal system.
In 2000, Thailand’s Office of the Judiciary established the Thai Mediation Center (TMC) to promote this practice of dispute resolution as a means of settling conflicts and to develop the professional skills of Thai mediators. The Center has worked closely with the Thai courts in creating a system that divert cases from the courts to mediation, and in developing the regulations that govern the process.
Thailand and other countries around the world have seen a major upsurge in the past several years in the use of mediation to resolve disputes. An increasingly wide variety of businesses and other organizations have embraced mediation as well as other ADR practices whenever feasible.
Mediation is especially popular in resolving smaller claims, as the cost of litigating a small case could in fact be larger than damages eventually awarded by a court. Parties in a mediation process typical experience only minimal costs.
Before mediation begins, the parties involved in the dispute must agree on the terms and conditions of the mediation, including keeping all information confidential. A highlight of the mediation process is that the parties are assisted, by the mediator, in creating a solution to their dispute that is mutually agreeable. Any agreement that is reached must specifically address the actions required of both parties as a result of the mediation and can be binding on both parties.
If one of the parties to the mediation agreement fails to comply with the terms and conditions that were set out and agreed in the mediation process, the other party can ask that the courts enforce the agreement.
Juslaws & Consult advises clients on the most effective and efficient means of resolving business disputes. Litigation is always an important means for resolving a conflict, but it may not always be the most reasonable, due to the costs and time involved. Our attorneys specializing in ADR have a solid track record in helping clients reach favorable outcomes to many types of business disputes.