In Thailand, how can I pursue commercial litigation after a supplier breach of contract and seek damages?

The late delivery and quality issue can be considered as breach of the agreement, your company should be able to file the lawsuit against the supplier. You have to proove term and condition of sale and purchase agreement, delivery date, condition of quality upon delivery, and actual incurred damages due to delay and mis-quality.

The late delivery and quality issue can be considered as breach of the agreement, your company should be able to file the lawsuit against the supplier. You have to proove term and condition of sale and purchase agreement, delivery date, condition of quality upon delivery, and actual incurred damages due to delay and mis-quality.

Below is a structured overview of your options in Thailand for a supplier breach (late delivery + sub-standard quality), including processes, timelines, estimated costs, and practical strategy.

Available Dispute Resolution Options in Thailand
1) Court Action (Thai Courts)
Jurisdiction: Thai courts have jurisdiction for contracts with Thai counterparties unless the contract specifies otherwise (e.g., arbitration clause).
Process
- File complaint → court schedules hearings → evidence period (documentary + witness hearings) → judgment → possible appeals.
Timelines
- First instance court: ~12–24 months
- Appeal Court: +12–18 months (if appealed)
- Supreme Court: +12–24 months (only if legal question; leave sometimes required)
Total if fully appealed: 2.5–5 years
Cost Estimates
- Court filing fee: ~2% of claim amount (capped at approx. THB 200,000)
- Lawyer fees:
SME-sized dispute (THB 1m–10m): ~THB 300,000–1,500,000
Larger commercial dispute (>THB 10m): ~THB 1.5m–5m+
Pros / Cons
- Pros: Established system
- Cons: Slow, multiple appeal stages
- Pros: Strong enforcement
- Cons: Thai-language, formal
- Pros: Good for high-value claims
- Cons: Foreign evidence/auth red tape

2) Arbitration (if contract includes arbitration clause)
Common Rules: THAC (Thailand Arbitration Center), TAI (Thai Arbitration Institute), SIAC (if international contract)
Timelines: ~12–18 months for final award (faster than court); Limited appeal/annulment grounds
Costs
- Filing/admin fees: THB 50,000 – 400,000+ depending on claim
- Arbitrators’ fees: THB 150,000 – several million
- Lawyer fees: THB 500k and up, depending on complexity
- Translation (if needed): THB 50k–300k
Arbitration tends to be more expensive upfront but more predictable & confidential.
Pros / Cons
- Pros: Faster, confidential
- Cons: Higher legal/admin costs
- Pros: Expert arbitrators
- Cons: Limited appeal
- Pros: International enforceability (NY Convention)

Mediation in Thailand
Mediation is increasingly encouraged by Thai courts and institutions (THAC, TAI).
When to Use
- Commercial relationship you want to preserve
- Smaller/mid-value disputes
- Quality dispute where compromise is possible (e.g., repairs, discount, replacement)
Costs
- Private mediation: THB 30,000 – 200,000+ (depending on mediator seniority)
- Court-annexed mediation: often low cost or free once litigation filed
Success likelihood
- Mediation is culturally aligned with Thai business practice; often effective.
Advisable: Yes — available before filing.

Recommended Practical Strategy
1) Issue a formal demand letter (Thai + English if needed)
- Cite breach, request cure/compensation, set deadline
2) Propose mediation
3) If no resolution:
- Check contract dispute clause (court vs arbitration)
- Evaluate claim size vs cost/time sensitivity
4) Proceed with arbitration or court
5) Consider interim measures (rare but possible) if assets at risk

Additional Considerations
- Evidence: delivery terms, QC test reports, correspondence, POs, contracts
- Liquidated damages clause: enforceable if reasonable (check contract)
- Governing law clause: if non-Thai law chosen, Thai courts will still apply Thai public policy
- Language: Thai court filings must be in Thai; arbitration bilingual possible
- Enforcement: Thai courts enforce both court judgments and arbitral awards (NY Convention)

Rule-of-Thumb Summary
Option: Time, Cost, Best When
Mediation: 1–3 months; THB 30k–200k; Preserve relationship / quick result
Thai Courts: 12–24 months first instance; THB 300k–5m+; Standard contracts, cost efficiency
Arbitration: 12–18 months; THB 500k+; High-value / cross-border / confidentiality

Bottom Line
- Try mediation first — low cost, culturally effective.
- Court is cheaper but slower & appeals possible.
- Arbitration is faster & more predictable but more costly.

GPS Legal

Below is a structured overview of your options in Thailand for a supplier breach (late delivery + sub-standard quality), including processes, timelines, estimated costs, and practical strategy.

Available Dispute Resolution Options in Thailand

1) Court Action (Thai Courts)

Jurisdiction: Thai courts have jurisdiction for contracts with Thai counterparties unless the contract specifies otherwise (e.g., arbitration clause).

Process

• File complaint → court schedules hearings → evidence period (documentary + witness hearings) → judgment → possible appeals.

Timelines

• First instance court: ~12–24 months
• Appeal Court: +12–18 months (if appealed)
• Supreme Court: +12–24 months (only if legal question; leave sometimes required)

Total if fully appealed: 2.5–5 years

Cost Estimates

• Court filing fee: ~2% of claim amount (capped at approx. THB 200,000)
• Lawyer fees:
  • SME-sized dispute (THB 1m–10m): ~THB 300,000–1,500,000
  • Larger commercial dispute (>THB 10m): ~THB 1.5m–5m+

Pros / Cons

Pros	Cons
Established system	Slow, multiple appeal stages
Strong enforcement	Thai-language, formal
Good for high-value claims	Foreign evidence/auth red tape

2) Arbitration (if contract includes arbitration clause)

Common Rules: THAC (Thailand Arbitration Center), TAI (Thai Arbitration Institute), SIAC (if international contract)

Timelines

• ~12–18 months for final award (faster than court)
• Limited appeal/annulment grounds

Costs

Item	Estimate
Filing/admin fees	THB 50,000 – 400,000+ depending on claim
Arbitrators’ fees	THB 150,000 – several million
Lawyer fees	THB 500k and up, depending on complexity
Translation (if needed)	THB 50k–300k

Arbitration tends to be more expensive upfront but more predictable & confidential.

Pros / Cons

Pros	Cons
Faster, confidential	Higher legal/admin costs
Expert arbitrators	Limited appeal
International enforceability (NY Convention)

Mediation in Thailand

Mediation is increasingly encouraged by Thai courts and institutions (THAC, TAI).

When to Use

• Commercial relationship you want to preserve
• Smaller/mid-value disputes
• Quality dispute where compromise is possible (e.g., repairs, discount, replacement)

Costs

• Private mediation: THB 30,000 – 200,000+ (depending on mediator seniority)
• Court-annexed mediation: often low cost or free once litigation filed

Success likelihood

• Mediation is culturally aligned with Thai business practice; often effective.

Advisable: Yes — available before filing.

Recommended Practical Strategy

1. Issue a formal demand letter (Thai + English if needed)
   • Cite breach, request cure/compensation, set deadline
2. Propose mediation
3. If no resolution:
   • Check contract dispute clause (court vs arbitration)
   • Evaluate claim size vs cost/time sensitivity
4. Proceed with arbitration or court
5. Consider interim measures (rare but possible) if assets at risk

Additional Considerations

• Evidence: delivery terms, QC test reports, correspondence, POs, contracts
• Liquidated damages clause: enforceable if reasonable (check contract)
• Governing law clause: if non-Thai law chosen, Thai courts will still apply Thai public policy
• Language: Thai court filings must be in Thai; arbitration bilingual possible
• Enforcement: Thai courts enforce both court judgments and arbitral awards (NY Convention)

Rule-of-Thumb Summary

Option	Time	Cost	Best When
Mediation	1–3 months	THB 30k–200k	Preserve relationship / quick result
Thai Courts	12–24 months first instance	THB 300k–5m+	Standard contracts, cost efficiency
Arbitration	12–18 months	THB 500k+	High-value / cross-border / confidentiality

Bottom Line

• Try mediation first — low cost, culturally effective.
• Court is cheaper but slower & appeals possible.
• Arbitration is faster & more predictable but more costly.

GPS Legal

Below is a structured overview of your options in Thailand for a supplier breach (late delivery + sub-standard quality), including processes, timelines, estimated costs, and practical strategy.

Available Dispute Resolution Options in Thailand

1) Court Action (Thai Courts)

Jurisdiction: Thai courts have jurisdiction for contracts with Thai counterparties unless the contract specifies otherwise (e.g., arbitration clause).

Process

• File complaint → court schedules hearings → evidence period (documentary + witness hearings) → judgment → possible appeals.

Timelines

• First instance court: ~12–24 months
• Appeal Court: +12–18 months (if appealed)
• Supreme Court: +12–24 months (only if legal question; leave sometimes required)

Total if fully appealed: 2.5–5 years

Cost Estimates

• Court filing fee: ~2% of claim amount (capped at approx. THB 200,000)
• Lawyer fees:
  • SME-sized dispute (THB 1m–10m): ~THB 300,000–1,500,000
  • Larger commercial dispute (>THB 10m): ~THB 1.5m–5m+

Pros / Cons

Pros	Cons
Established system	Slow, multiple appeal stages
Strong enforcement	Thai-language, formal
Good for high-value claims	Foreign evidence/auth red tape

2) Arbitration (if contract includes arbitration clause)

Common Rules: THAC (Thailand Arbitration Center), TAI (Thai Arbitration Institute), SIAC (if international contract)

Timelines

• ~12–18 months for final award (faster than court)
• Limited appeal/annulment grounds

Costs

Item	Estimate
Filing/admin fees	THB 50,000 – 400,000+ depending on claim
Arbitrators’ fees	THB 150,000 – several million
Lawyer fees	THB 500k and up, depending on complexity
Translation (if needed)	THB 50k–300k

Arbitration tends to be more expensive upfront but more predictable & confidential.

Pros / Cons

Pros	Cons
Faster, confidential	Higher legal/admin costs
Expert arbitrators	Limited appeal
International enforceability (NY Convention)

Mediation in Thailand

Mediation is increasingly encouraged by Thai courts and institutions (THAC, TAI).

When to Use

• Commercial relationship you want to preserve
• Smaller/mid-value disputes
• Quality dispute where compromise is possible (e.g., repairs, discount, replacement)

Costs

• Private mediation: THB 30,000 – 200,000+ (depending on mediator seniority)
• Court-annexed mediation: often low cost or free once litigation filed

Success likelihood

• Mediation is culturally aligned with Thai business practice; often effective.

Advisable: Yes — available before filing.

Recommended Practical Strategy

1. Issue a formal demand letter (Thai + English if needed)
   • Cite breach, request cure/compensation, set deadline
2. Propose mediation
3. If no resolution:
   • Check contract dispute clause (court vs arbitration)
   • Evaluate claim size vs cost/time sensitivity
4. Proceed with arbitration or court
5. Consider interim measures (rare but possible) if assets at risk

Additional Considerations

• Evidence: delivery terms, QC test reports, correspondence, POs, contracts
• Liquidated damages clause: enforceable if reasonable (check contract)
• Governing law clause: if non-Thai law chosen, Thai courts will still apply Thai public policy
• Language: Thai court filings must be in Thai; arbitration bilingual possible
• Enforcement: Thai courts enforce both court judgments and arbitral awards (NY Convention)

Rule-of-Thumb Summary

Option	Time	Cost	Best When
Mediation	1–3 months	THB 30k–200k	Preserve relationship / quick result
Thai Courts	12–24 months first instance	THB 300k–5m+	Standard contracts, cost efficiency
Arbitration	12–18 months	THB 500k+	High-value / cross-border / confidentiality

Bottom Line

• Try mediation first — low cost, culturally effective.
• Court is cheaper but slower & appeals possible.
• Arbitration is faster & more predictable but more costly.

GPS Legal

Below is a structured overview of your options in Thailand for a supplier breach (late delivery + sub-standard quality), including processes, timelines, estimated costs, and practical strategy.

Available Dispute Resolution Options in Thailand
1) Court Action (Thai Courts)
Jurisdiction: Thai courts have jurisdiction for contracts with Thai counterparties unless the contract specifies otherwise (e.g., arbitration clause).
Process: File complaint; court schedules hearings; evidence period (documentary + witness hearings); judgment; possible appeals.
Timelines:
- First instance court: 12–24 months
- Appeal Court: 12–18 months (if appealed)
- Supreme Court: 12–24 months (only if legal question; leave sometimes required)

Total if fully appealed: 2.5–5 years

Cost Estimates:
- Court filing fee: about 2% of claim amount (capped at approx. THB 200,000)
- Lawyer fees:
SME-sized dispute (THB 1m–10m): THB 300,000–1,500,000
Larger commercial dispute (>THB 10m): THB 1.5m–5m+

Pros / Cons:
- Pros: Established system
- Cons: Slow, multiple appeal stages
- Pros: Strong enforcement
- Cons: Thai language, formal
- Pros: Good for high-value claims
- Cons: Foreign evidence / red tape

2) Arbitration (if contract includes arbitration clause)
Common Rules: THAC (Thailand Arbitration Center), TAI (Thai Arbitration Institute), SIAC (if international contract)
Timelines: about 12–18 months for final award (faster than court); limited appeal/annulment grounds
Costs:
- Filing/admin fees: THB 50,000 – 400,000+ depending on claim
- Arbitrators’ fees: THB 150,000 – several million
- Lawyer fees: THB 500k and up, depending on complexity
- Translation (if needed): THB 50k–300k
Arbitration tends to be more expensive upfront but more predictable and confidential.

Pros / Cons:
- Pros: Faster, confidential
- Cons: Higher legal/admin costs
- Pros: Expert arbitrators
- Cons: Limited appeal
- Pros: International enforceability (NY Convention)

Mediation in Thailand
Mediation is increasingly encouraged by Thai courts and institutions (THAC, TAI).
When to Use:
- Commercial relationship you want to preserve
- Smaller/mid-value disputes
- Quality dispute where compromise is possible (e.g., repairs, discount, replacement)

Costs:
- Private mediation: THB 30,000 – 200,000+ (depending on mediator seniority)
- Court-annexed mediation: often low cost or free once litigation filed

Success likelihood:
- Mediation is culturally aligned with Thai business practice; often effective.

Advisable: Yes — available before filing.

Recommended Practical Strategy
1) Issue a formal demand letter (Thai + English if needed): cite breach, request cure/compensation, set deadline
2) Propose mediation
3) If no resolution: Check contract dispute clause (court vs arbitration); Evaluate claim size vs cost/time sensitivity
4) Proceed with arbitration or court
5) Consider interim measures (rare but possible) if assets at risk

Additional Considerations:
- Evidence: delivery terms, QC test reports, correspondence, POs, contracts
- Liquidated damages clause: enforceable if reasonable (check contract)
- Governing law clause: if non-Thai law chosen, Thai courts will still apply Thai public policy
- Language: Thai court filings must be in Thai; arbitration bilingual possible
- Enforcement: Thai courts enforce both court judgments and arbitral awards (NY Convention)

Rule-of-Thumb Summary:
Option: Mediation — Time 1–3 months; Cost THB 30k–200k; Best When Preserve relationship / quick result
Thai Courts — Time 12–24 months first instance; Cost THB 300k–5m+; Best When Standard contracts, cost efficiency
Arbitration — Time 12–18 months; Cost THB 500k+; Best When High-value / cross-border / confidentiality

Bottom Line:
- Try mediation first — low cost, culturally effective.
- Court is cheaper but slower and appeals possible.
- Arbitration is faster and more predictable but more costly.

GPS Legal

Below is a structured overview of your options in Thailand for a supplier breach (late delivery + sub-standard quality), including processes, timelines, estimated costs, and practical strategy.

Available Dispute Resolution Options in Thailand

1) Court Action (Thai Courts)

Jurisdiction: Thai courts have jurisdiction for contracts with Thai counterparties unless the contract specifies otherwise (e.g., arbitration clause).

Process

• File complaint → court schedules hearings → evidence period (documentary + witness hearings) → judgment → possible appeals.

Timelines

• First instance court: ~12–24 months
• Appeal Court: +12–18 months (if appealed)
• Supreme Court: +12–24 months (only if legal question; leave sometimes required)

Total if fully appealed: 2.5–5 years

Cost Estimates

• Court filing fee: ~2% of claim amount (capped at approx. THB 200,000)
• Lawyer fees:
  • SME-sized dispute (THB 1m–10m): ~THB 300,000–1,500,000
  • Larger commercial dispute (>THB 10m): ~THB 1.5m–5m+

Pros / Cons

Pros	Cons
Established system	Slow, multiple appeal stages
Strong enforcement	Thai-language, formal
Good for high-value claims	Foreign evidence/auth red tape

2) Arbitration (if contract includes arbitration clause)

Common Rules: THAC (Thailand Arbitration Center), TAI (Thai Arbitration Institute), SIAC (if international contract)

Timelines

• ~12–18 months for final award (faster than court)
• Limited appeal/annulment grounds

Costs

Item	Estimate
Filing/admin fees	THB 50,000 – 400,000+ depending on claim
Arbitrators’ fees	THB 150,000 – several million
Lawyer fees	THB 500k and up, depending on complexity
Translation (if needed)	THB 50k–300k

Arbitration tends to be more expensive upfront but more predictable & confidential.

Pros / Cons

Pros	Cons
Faster, confidential	Higher legal/admin costs
Expert arbitrators	Limited appeal
International enforceability (NY Convention)

Mediation in Thailand

Mediation is increasingly encouraged by Thai courts and institutions (THAC, TAI).

When to Use

• Commercial relationship you want to preserve
• Smaller/mid-value disputes
• Quality dispute where compromise is possible (e.g., repairs, discount, replacement)

Costs

• Private mediation: THB 30,000 – 200,000+ (depending on mediator seniority)
• Court-annexed mediation: often low cost or free once litigation filed

Success likelihood

• Mediation is culturally aligned with Thai business practice; often effective.

Advisable: Yes — available before filing.

Recommended Practical Strategy

1. Issue a formal demand letter (Thai + English if needed)
   • Cite breach, request cure/compensation, set deadline
2. Propose mediation
3. If no resolution:
   • Check contract dispute clause (court vs arbitration)
   • Evaluate claim size vs cost/time sensitivity
4. Proceed with arbitration or court
5. Consider interim measures (rare but possible) if assets at risk

Additional Considerations

• Evidence: delivery terms, QC test reports, correspondence, POs, contracts
• Liquidated damages clause: enforceable if reasonable (check contract)
• Governing law clause: if non-Thai law chosen, Thai courts will still apply Thai public policy
• Language: Thai court filings must be in Thai; arbitration bilingual possible
• Enforcement: Thai courts enforce both court judgments and arbitral awards (NY Convention)

Rule-of-Thumb Summary

Option	Time	Cost	Best When
Mediation	1–3 months	THB 30k–200k	Preserve relationship / quick result
Thai Courts	12–24 months first instance	THB 300k–5m+	Standard contracts, cost efficiency
Arbitration	12–18 months	THB 500k+	High-value / cross-border / confidentiality

Bottom Line

• Try mediation first — low cost, culturally effective.
• Court is cheaper but slower & appeals possible.
• Arbitration is faster & more predictable but more costly.

GPS Legal

Hello

I have outlined the available options, potential timelines, and associated costs to help you navigate this matter.

Dispute Resolution Options in Thailand
When dealing with a breach of contract in Thailand, you have several avenues for recourse. These can be categorized into alternative dispute resolution (ADR) methods and formal litigation.​

Negotiation: This is typically the first step and is often a cost-effective and efficient way to resolve disputes. The Thai business culture generally favors a non-confrontational approach, which can make direct negotiations successful.​

Mediation: If negotiations fail, mediation is a highly recommended next step. A neutral third party will help facilitate a mutually agreeable solution. This process is voluntary, confidential, and significantly faster and cheaper than litigation. The Thai Commercial Mediation Center (TCMC) is a key institution for this.​

Arbitration: This is a more formal process than mediation where an arbitrator makes a binding decision on the dispute. It is generally faster, more flexible, and more private than a court trial.​

Litigation: This involves filing a lawsuit in a Thai court. While it is a viable option, it is generally the most time-consuming and expensive route.​

Timelines and Costs
The time and financial resources required will largely depend on the path you choose:

Litigation: A court case in Thailand can be a lengthy process. A first-instance decision typically takes between 12 to 18 months, and any appeals could add another year or more to the timeline. Court fees are generally 2% of the claimed amount up to 50 million THB, with an additional 0.1% for amounts exceeding that (capped at 200,000 THB per court level). Attorney fees can vary, with some firms charging around 8,000 THB per hour, and the starting cost for a civil case could be approximately 300,000 THB.​

Arbitration and Mediation: These alternative dispute resolution methods are generally much faster and more cost-effective than litigation. While there are still costs involved, such as administrative and legal fees, they are typically lower than those for a full court case.​

Recommendation: Mediation Before Formal Action
Given the circumstances, I strongly advise considering mediation before initiating any formal legal proceedings. Mediation is a less adversarial approach that can help preserve business relationships, which may be valuable in the long run. It offers a quicker and more economical path to a resolution, allowing you to avoid the lengthy and costly process of a court battle.​

Should you wish to discuss this matter further and explore the specifics of your case, I am available for a consultation via WhatsApp.

Best regards,

 You are entitled to pursue a claim for breach of contract. The counterparty delivered late and supplied goods that did not meet the agreed standards/specifications, causing loss. You may claim damages and statutory interest, and request rectification or replacement of the goods. If the breach is material, you may also terminate the contract under applicable law.
    To save time and costs and to preserve the commercial relationship, we recommend attempting negotiation/mediation with the counterparty as a first step. If mediation is unsuccessful, the appropriate dispute-resolution process can then be pursued.
    Whether to file a lawsuit in court or commence arbitration depends on the terms of the contract. If the contract contains a valid and enforceable arbitration clause that remains in effect, the dispute should, in principle, be referred to arbitration unless the parties agree otherwise. If there is no such clause, or the other party refuses to arbitrate, you may bring the claim before the Thai courts.
    Before taking further action, we recommend issuing a formal notice of breach specifying 
the violations, the remedies sought, and a clear deadline for cure. This notice will serve as evidence in support of your claims.
    Our firm provides assistance and legal advisory services. You may reply directly to this email, and we will send a quotation for your consideration.