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How to sue a company in Thailand: the court, the costs and the steps

A claim against a Thai company is brought in the Thai courts, in Thai, under the Civil Procedure Code. This guide follows a claim from the decision to sue to the appeal. It covers which court hears it, what filing costs, what a plaintiff based abroad needs to prepare, and what happens if the company does not defend.

Phenhnung Thabthimthong Managing Partner, Head of Litigation, YACT Association

Before you file

Four things are worth settling first. Is the claim still in time? The limitation period depends on the kind of debt. Has the company been put in default? Without a fixed due date, a written demand does that. Does the contract send disputes to arbitration? Then the company can ask the court to stay the case. And what documents prove the claim?

Each of these is covered in more detail in Debt recovery in Thailand: a guide for foreign creditors.

Which court hears the claim

Under section 4(1) of the Civil Procedure Code, a claim is filed in the court for the area where the defendant is domiciled, or where the cause of action arose. A company is domiciled where its head office or a place of business is, or at a domicile chosen in its articles (Civil and Commercial Code, section 68). That is usually the address on its company certificate.

Some disputes with an international element go to a specialist court. Under section 7 of the Act establishing it, the Central Intellectual Property and International Trade Court hears civil cases on:

  • the international sale or exchange of goods or financial instruments
  • international services, carriage and insurance, and related transactions
  • letters of credit, remittances into and out of Thailand, and trust receipts
  • arbitration of disputes in those areas

A foreign supplier suing a Thai buyer for the price of exported goods will often find its claim belongs there.

What filing costs

The court fee is paid when the claim is filed. It is set by Table 1 annexed to the Civil Procedure Code:

Amount claimedCourt fee
Up to 50 million baht2 per cent, capped at 200,000 baht
The part above 50 million baht0.1 per cent

A claim for 3 million baht costs 60,000 baht to file. A claim for 20 million baht reaches the cap, so 200,000 baht. A claim for 80 million baht costs 200,000 baht plus 30,000 baht on the 30 million above the threshold, so 230,000 baht in all.

Two other costs should be budgeted for. A plaintiff with no domicile or assets in Thailand may be ordered to give security for the defendant's costs (section 253). And lawyers' fees are separate from the court fee; we quote ours in advance.

What a plaintiff abroad prepares

Proceedings are in Thai. A document in another language is filed with a Thai translation (section 46).

A foreign company acts through a Thai lawyer under a power of attorney, and has to show the court that it exists and who may sign for it. In practice, documents signed abroad for this purpose are usually notarised and legalised before they are used, so this step is best started early.

The evidence the claim rests on also needs gathering in a form that can be produced in court: the contract, invoices, delivery records, correspondence and payment records.

From filing to judgment

Once the claim is accepted, the court serves the summons and the statement of claim on the company. Under section 177, the company then has 15 days to file a written defence. In it, the company must say what it admits and what it denies, and why. It may also bring a counterclaim.

If no defence is filed, the plaintiff applies for judgment by default under section 198. If the plaintiff does not apply in time, the court strikes the case out, so this deadline matters to the plaintiff as much as the defence deadline matters to the company.

Where the company defends, the court settles the issues in dispute, hears the witnesses and documents, and gives judgment. Settlement remains possible at any stage.

Appeals

An appeal against the judgment is filed with the court that gave it, within one month of the day the judgment is read (section 229). With the appeal, the appellant must also deposit the costs the judgment ordered it to pay the other side.

A further appeal to the Supreme Court is possible only with that court's permission. The petition for permission is filed within one month of the Court of Appeal's judgment (section 247).

After judgment

A judgment does not pay itself. Enforcement is a separate stage. The judgment creditor has ten years from the judgment to enforce it (section 274), by tracing the debtor's assets and having the execution officer seize and sell them, or attach money owed to the debtor. See enforcing a Thai court judgment.

Against a company that cannot pay, a bankruptcy petition may be the better route than a claim for judgment. See Petitioning a Thai company into bankruptcy.

Questions this raises

  • Can we bring the case in English?

    No. Proceedings in the Thai courts are in Thai. Documents in English are filed with Thai translations (Civil Procedure Code, section 46).

  • How much is the court fee to sue a company in Thailand?

    2 per cent of the amount claimed up to 50 million baht, capped at 200,000 baht. The part of a claim above 50 million baht adds 0.1 per cent. Lawyers' fees are separate.

  • What if the Thai company ignores the claim?

    If it files no defence within 15 days of service, the plaintiff can apply for judgment by default under section 198. The plaintiff must apply in time, or the court strikes the case out.

  • How long do we have to appeal?

    One month from the day the judgment is read (section 229). A further appeal to the Supreme Court needs that court's permission, applied for within one month of the Court of Appeal's judgment (section 247).

The legislation

  • Civil Procedure Code, sections 4, 46, 177, 198, 229, 247, 253 and 274, and Table 1 (court fees)
  • Civil and Commercial Code, section 68
  • Act for the Establishment of and Procedure for the Intellectual Property and International Trade Court B.E. 2539 (1996), section 7

Not sure whether the documents you hold are enough?

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