Alternative dispute resolution (ADR) processes, including arbitration and mediation, have become well established in the Thai judiciary. These mechanisms, meant to provide out of court resolutions to conflicts, are accessible to 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 dispute resolution as a means of settling conflicts and to help develop the professional skills of Thai mediators. The Center has worked closely with the Thai courts in creating a system that diverts cases from the courts to mediation, and in developing regulations to 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 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. In the process the parties are assisted, by the mediator, in arriving at a mutually-agreeable solution to their dispute. Any agreement reached through mediation must specifically address the actions required of both parties and must be binding.
If one of the parties to the mediation agreement fails to comply with the terms and conditions that were set out and agreed on 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.