If you’ve been in business long enough, you know disputes happen. A supplier misses a massive deadline. A joint venture partner starts quietly redirecting deals into a side business. Or maybe a customer simply stops paying your invoices after taking delivery of your product.
When a contract breaks down at home, you already know what to do. You call your lawyer, send a demand letter, calculate the costs, and decide if suing makes sense.
But when you’re doing business in Southeast Asia? The playbook changes completely.
Hiring a litigation law firm in Thailand isn’t like hiring one in New York or London. Thailand runs on a civil law system. Every single court proceeding happens strictly in Thai. And winning a piece of paper that says “You Won” means nothing if you can’t actually collect your money.
Let’s walk through how commercial litigation actually works on the ground in Thailand, without the legal jargon.
How the Thai Court System Actually Works
If you’re dealing with a business conflict in Bangkok, you first need to know who is hearing your case.
Unlike the US or UK, where past court rulings (precedents) set the rules, Thailand uses a civil law system. That means judges look strictly at written codes, mainly the Civil and Commercial Code and the Civil Procedure Code.
1. Courts of First Instance (Trial Courts)
This is where your lawsuit starts. Depending on your issue, you’ll land in one of two places:
- Civil Courts: These handle basic contract breaches, shareholder fights, torts, and debt collection.
- Specialized Courts: If you’re a foreign business, your case will often go to the Central Intellectual Property and International Trade Court (IPIT Court). They handle international sales contracts, maritime trade, and IP disputes. The judges here often speak English and actually understand global business.
This trial court level is the only stage where live witnesses testify and evidence gets examined in real time.
2. Court of Appeal
The Court of Appeal reviews questions of both fact and law.
Here’s the catch: there is no re-trial. No witnesses take the stand. The judges simply read trial transcripts, review documents, and examine written legal arguments submitted by lawyers.
3. The Supreme Court (Dika Court)
This is the top court in Thailand.
Getting your case heard here isn’t guaranteed. You have to ask for permission to appeal to the Supreme Court. The Supreme Court only takes cases that involve major public interest or critical points of law that need clarification.
Realistic Timelines: How Long Will This Take?
Here’s a big mistake we see foreign entrepreneurs make all the time: assuming a clear-cut breach of contract can be wrapped up in a few months. It won’t be. Court schedules in Bangkok are packed.
Here is what a realistic timeline looks like:
Filing (1 – 3 Months) ──> Court-Annexed Mediation & Pre-Trial (1 – 3 Months) ──> [First Instance Trial (6 – 12 Months) ──> Appellate Stage (12 – 18 Months)
Stage 1: Filing the Lawsuit (1 to 3 Months)
Before your lawyer can step into a courtroom, you have to clear a few administrative hurdles:
- Sending a Demand Letter: You must send a formal notice of default giving the other side one last chance (usually 7 to 30 days) to fix the issue.
- Power of Attorney (POA): If your company is a foreign company, it would be preferable for you to execute a valid Power of Attorney authorizing a person who is authorized to act on your company’s behalf and resides in Thailand.
This document has to be notarized and legalized by the Royal Thai Embassy in your country. That alone usually takes 3 to 6 weeks.
Stage 2: Court-Annexed Mediation & Pre-Trial (1 to 3 Months)
After you file, Thai courts push hard for court-annexed mediation.
Before going to trial, a mediator sits both parties down in a private room. The goal? See if you can settle right there.
Don’t skip or ignore this step. Thai courts love amicable settlements. A huge chunk of commercial disputes end right here, which saves you years of legal fees. If you agree on a payout, the court turns it into an enforceable compromise agreement.
Stage 3: The Trial (6 to 12 Months)
If mediation fails, the court sets dates for witness examination.
Witness hearings in Thailand are almost held back-to-back such as Thursday to Friday. Once all witnesses finish testifying, the court issues a judgment, usually within 30 to 60 days.
Stage 4: Appeals (12 to 18 Months)
If the losing party appeals, and they often do, add another 6 months to 1 years per appeal level.
The Reality Check: A basic commercial lawsuit in Thailand takes about 12 to 16 months for an initial ruling. If fought through appeals, expect a 8 months to 1 year journey.
Counting the Cost: What Will Litigation Cost You?
Litigation is an investment. You need to calculate the ROI before filing a single document.
Here are the four main expenses you need to budget for:
1. Official Court Fees (Filing Fees)
When suing for money, you must pay an upfront fee (court tariff) directly to the court:
- For claims under THB 50 million, the fee is 2% of the claim (capped at THB 200,000 for standard claims under THB 50 million).
- For claims over THB 50 million, an extra 0.1% applies to anything above that threshold.
If you win, the court can order the losing side to repay your filing fees. But you still have to pay it upfront out of pocket.
2. Legal Fees
Law firms in Bangkok generally bill in one of three ways:
- Fixed Fees by Stage: You pay per milestone (Filing, Mediation, Trial, Enforcement). Most foreign companies prefer this because it keeps costs predictable.
- Hourly Rates: Common for complex cross-border cases that require huge amounts of document review.
- Retainers: Monthly fees combined with discounted rates.
Note on Contingency Fees: Under Thai legal ethics, contingency fee agreements (where a lawyer takes a percentage of your winnings without charging base fees) are generally not permitted.
3. Translation Costs
This is a hidden cost most companies miss. Every single piece of evidence, contracts, emails, WhatsApp chats, invoices, must be translated into Thai.
In heavy contract disputes, translating hundreds of pages of evidence can cost thousands of dollars fast.
Thai Courts vs. Commercial Arbitration
Because court lawsuits take years, many business owners put arbitration clauses in their Thai contracts.
Arbitration isn’t always better, but it offers big advantages for cross-border deals.
| Feature | Civil Court Litigation | Commercial Arbitration |
| Timeframe | 6 months to 1.5 years | 12 to 18 months |
| Language | Thai only | English, Thai, or any language |
| Decision Maker | Thai Judges | Chosen Arbitrator |
| Privacy | Public court record | 100% Private & Confidential |
| Global Enforcement | Hard (No direct treaties) | Easy worldwide (170+ countries via New York Convention) |
Key Arbitral Institutions in Bangkok
- Thailand Arbitration Center (THAC): A modern center focused on international commercial disputes.
- Thai Chamber of Commerce (TAI) Arbitration Institute: One of the oldest arbitration bodies in the country, great for regional contracts.
Why Pick Arbitration?
- Global Enforcement: If the other party has bank accounts or properties in Singapore, Hong Kong, or Europe, an arbitral award made in Thailand can be enforced worldwide under the New York Convention.
- Industry Expertise: You can select arbitrators who actually understand tech, shipping, or construction.
- Privacy: Thai court trials are open to the public. If you don’t want your revenue figures or trade secrets made public, arbitration keeps things private.
How to Collect Your Money: Enforcing a Judgment
Winning your court case feels great. But it’s only half the battle. If the losing party refuses to pay, you have to execute the judgment.
Working with the Legal Execution Department (LED)
Court enforcement is handled by civil officers from the Legal Execution Department (LED). Once you get a Writ of Execution, you have 10 years to find and seize the debtor’s assets.
Execution steps include:
- Freezing Bank Accounts: Directly garnishing corporate accounts.
- Seizing Real Estate: Putting land titles or buildings up for public auction.
- Intercepting Receivables: Redirecting payments owed to the debtor by third parties.
Pre-Trial Emergency Injunctions
What if the other company realizes they are going to lose and starts quietly draining bank accounts or selling off land?
Your lawyer can request interim measures (emergency pre-trial injunctions) to freeze their assets before the trial finishes. But you must prove to the judge that the defendant is actively trying to hide their money.
What About Foreign Court Judgments?
Here is a mistake that trips up a lot of foreign founders: Thailand does not automatically enforce foreign court judgments.
If you win a $5 million judgment in London or California, you cannot take that judgment to a Thai police officer or execution agent to seize assets. You have to file a brand-new lawsuit in a Thai court, using your foreign judgment as evidence.
However, foreign arbitral awards are directly enforceable under international treaties.
4 Actionable Steps Before You Sue
If you are facing a dispute with a Thai company, here is what you should do right now:
- Audit Your Contracts: Check your governing law and dispute clauses before sending any angry emails.
- Trace Assets Early: Figure out where their bank accounts, factories, and real estate are located before you file suit.
- Take Mediation Seriously: Try to work out a deal during court mediation. A quick settlement today beats four years of litigation tomorrow.
- Work with Local Experts: Partner with a reputable litigation law firm in Thailand like Herrera & Partners that understands international business and knows how local courtrooms actually work.
Getting through a commercial dispute isn’t easy. But when you understand the timeline, budget properly, and move quickly to protect assets, you give your business the best possible chance to recover what you’re owed.
Need Legal Guidance on a Commercial Dispute in Thailand?
Navigating the Thai legal system without experienced, local legal representation can cost your business valuable time and capital. Whether you are facing a contractual default, preparing for court-annexed mediation, or seeking to enforce a high-value judgment or arbitral award, Herrera & Partners (H&P) is here to assist you.
Our team of international litigators and Thai legal advocates provides clear, strategic, and practical legal advice tailored to secure your commercial interests in Bangkok and across Thailand.
Contact our legal team today to schedule an initial consultation:
- Email: info@herrera-partners.com
- Phone: +66 2 254 5600
- Office: Two Pacific Place, 17th Floor, 142 Sukhumvit Road, Bangkok, Thailand
