Commercial litigation in Thailand plays a central role in resolving disputes arising out of business transactions, contracts, corporate governance, and commercial relationships. Given Thailand’s vibrant economy and increasing cross-border trade, commercial disputes are common, involving both domestic and foreign parties. Navigating commercial litigation in Thailand requires familiarity with the legal framework, court procedures, enforcement mechanisms, and local practices.
This article provides a detailed analysis of commercial litigation in Thailand, focusing on jurisdiction, procedural stages, evidence, enforcement, and practical considerations.
Legal Framework
Commercial litigation is primarily governed by:
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The Civil and Commercial Code (CCC) — sets out substantive law governing contracts, partnerships, companies, obligations, and torts.
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The Civil Procedure Code — regulates court processes for civil and commercial matters.
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The Act on the Establishment of and Procedure for Intellectual Property and International Trade Court B.E. 2539 (1996) — governs specialized courts handling certain commercial cases.
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The Arbitration Act B.E. 2545 (2002) — relevant where arbitration agreements are contested in litigation.
Jurisdiction and Venue
Commercial disputes are heard by:
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Civil Courts (ordinary courts of first instance), for general commercial claims.
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Specialized courts:
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Intellectual Property and International Trade Court (IP&IT Court) — disputes involving IP, international sale of goods, shipping, or foreign commercial contracts.
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Bankruptcy Court — commercial insolvency matters.
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Labour Court — employment-related commercial disputes.
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Venue is generally determined by:
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The defendant’s domicile.
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The location where the cause of action arose.
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Specific contractual jurisdiction clauses (if enforceable under Thai law).
Types of Commercial Disputes Commonly Litigated
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Breach of contract (e.g. sales, distribution, franchise, agency)
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Shareholder and director disputes
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Debt recovery
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Partnership and joint venture disputes
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Construction and infrastructure disputes
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Intellectual property infringement with commercial impact
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Unfair trade practices and competition claims
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Cross-border commercial disputes
Commencement of Litigation
Statement of Claim
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The plaintiff files a statement of claim (plaint) setting out facts, legal grounds, and remedies sought.
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The court issues a summons to the defendant.
Service of Process
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For defendants in Thailand: service is usually effected through court officers.
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For foreign defendants: service is via diplomatic channels or as per international treaties (e.g. Hague Service Convention where applicable).
Defense and Counterclaims
The defendant must file a written statement of defense within:
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15 days (if served in Thailand).
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30 days or more (if served abroad, subject to the court’s order).
Defendants may raise:
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General defences.
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Counterclaims against the plaintiff.
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Third-party claims where applicable.
Failure to file a defence may result in default judgment.
Preliminary Issues
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Jurisdiction challenges (e.g., improper venue, arbitration clause).
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Procedural objections (e.g., improper service).
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Requests for provisional measures (e.g., seizure of property, injunctions).
Evidence in Commercial Litigation
Thailand is a civil law jurisdiction, but with adversarial procedural features.
Documentary Evidence
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Central to most cases; contracts, invoices, correspondence, accounting records.
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Foreign documents must be translated into Thai and properly notarized/legalized.
Witness Testimony
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Parties may call fact and expert witnesses.
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Witness lists and statements must be submitted in advance.
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Cross-examination is permitted.
Expert Opinions
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Common in technical or financial disputes (e.g., construction defects, valuation).
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Experts may be appointed by the party or the court.
Court Procedures
1️⃣ Preliminary hearings — to clarify issues, set trial dates, address procedural matters.
2️⃣ Trial hearings — witness examination and cross-examination; typically conducted over multiple non-consecutive days.
3️⃣ Closing statements — often in written form.
4️⃣ Judgment — issued after the close of evidence; timelines vary (commonly 1–6 months post-trial).
Note: Proceedings are conducted in Thai language. Foreign parties must act through a licensed Thai attorney.
Duration of Proceedings
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Simple commercial cases: 1–2 years at first instance.
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Complex or high-value cases: 2–4 years, or longer if involving substantial evidence or multiple parties.
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Appeals: Add 1–2 years at the Court of Appeal; Supreme Court review possible on points of law.
Provisional Measures
The Thai Civil Procedure Code permits interim relief to protect a plaintiff’s interests:
✅ Prejudgment attachment of assets.
✅ Injunctions against specific actions.
✅ Preservation orders for evidence.
These require:
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Strong prima facie case.
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Proof of irreparable harm or risk of asset dissipation.
Enforcement of Judgments
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Domestic judgments are enforced through the Execution Office: seizure of assets, garnishment of bank accounts, sale of property.
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Foreign judgments are not directly enforceable in Thailand. The prevailing party must file a fresh action based on the foreign judgment (unless an arbitral award, in which case the Arbitration Act and New York Convention apply).
Costs and Fees
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Court fees: Generally 2% of the claim amount, capped at THB 200,000 (subject to change).
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Attorney’s fees: Negotiated privately; typically not recoverable beyond statutory limits (often nominal sums awarded).
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Other costs: Translation, expert fees, witness expenses.
Appeals Process
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Court of Appeal: Appeals on both facts and law.
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Supreme Court: Permission required for most commercial cases; limited to legal questions of significant importance.
Challenges in Commercial Litigation
⚠ Language barrier
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All proceedings are in Thai; foreign documents require certified Thai translations.
⚠ Delays
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Courts face backlogs, especially in complex cases or those involving multiple defendants.
⚠ Enforcement difficulties
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Asset concealment or transfers during litigation can frustrate judgment enforcement.
⚠ Forum shopping
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Parties may dispute venue or jurisdiction to delay proceedings.
Alternative Dispute Resolution (ADR)
While this article focuses on litigation:
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Mediation: Increasingly encouraged by courts; settlement rates improving.
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Arbitration: Preferred in complex commercial contracts, particularly involving foreign parties.
Courts will generally uphold valid arbitration agreements and stay proceedings if arbitration is mandated.
Practical Considerations for Foreign Litigants
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Choose jurisdiction clauses carefully in contracts.
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Prepare documentary evidence early, ensuring translations and certifications are complete.
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Consider interim relief promptly if there is risk of asset dissipation.
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Engage local counsel with commercial litigation expertise and familiarity with cross-border matters.
Conclusion
Commercial litigation in Thailand is a well-established but procedurally demanding process that requires careful preparation, strategic thinking, and local legal expertise. While the court system provides effective remedies for enforcing rights and obligations, parties must navigate complex procedural rules, language requirements, and enforcement challenges to achieve successful outcomes.
