THAILAND Law and Practice Contributed by: John Frangos, Nuanchun Somboonvinij, Santhapat Periera and Niti Muangkote, Tilleke & Gibbins
2.6.2 Lessor Taking Possession of the Aircraft A court order must be obtained for the lessor to take physical possession of the aircraft without the lessee’s consent. 2.6.3 Specific Courts for Aviation Disputes The Intellectual Property and International Trade Court (IP&IT Court) has jurisdiction to decide aviation dis - putes where the lessor is a foreign party, the lessee is Thai and the aircraft is delivered from a foreign country to Thailand. All of these types of cases have been submitted to and considered by the IP&IT Court. 2.6.4 Summary Judgment or Other Relief Under Thai law, interim relief pending final judgment can be obtained. A lessor must apply to the court to obtain emergency relief. If the court considers the case to be an emergency, it will conduct an ex parte hearing on the filing date. The court will decide on the interim relief requested and will only hear from the lessor. The evidential burden to obtain an emergency injunction in Thailand is very high. In practice, it is challenging to obtain these types of injunctions. A lessor can also seek non-emergency injunctive relief, where the lessee will have an opportunity to challenge the lessor’s request. In this situation, the court will hear from both parties. The evidential burden to obtain relief here is lower. A lessor cannot obtain summary judgment or equita - ble relief. A full trial must be conducted before a final judgment is issued and the concept of equitable relief is not recognised under Thai law. 2.6.5 Domestic Courts’ Approach to Foreign Laws and Judgments Under Thai law, foreign law can apply as long as it is not contrary to public order in Thailand or good morals. The foreign law must also be proven to the satisfaction of the Thai courts. The IP&IT Court has jurisdiction to consider cross- border aviation lease disputes. If the initiating party submits a claim to the IP&IT Court, it will accept and consider the case even in instances where the lease
agreement specified that the case must be exclusively submitted to the foreign court. However, if the initiating party submits a claim to a foreign court, the IP&IT Court will consider the for - eign court order or judgment as evidence only. For - eign court orders or judgments are not enforceable in Thailand. Domestic courts will generally uphold a waiver of immunity. 2.6.6 Domestic Courts’ Recognition of Foreign Judgments/Awards A domestic court in Thailand will not enforce a foreign court judgment. The foreign court judgment is recog - nised as evidence only. However, a foreign arbitral award is recognised and enforceable without the merits of the case being re- examined. 2.6.7 Judgments in Foreign Currencies If the request for monetary damage in the complaint is in a foreign currency, the Thai court will award it as requested. 2.6.8 Limitations on Lessors’ Actions Following Termination There are no limitations on a lessor recovering default interest under the Thai statutory rate and additional rent following termination of the lease. The Thai court may enforce the default interest provided in the lease agreement but if the court considers the rate specified in the lease to be a penalty then the Thai court may use its discretion to reduce the default interest. However, the Thai court may only award additional rent following termination of the lease if the actual loss is proven. 2.6.9 Lessor’s Requirement to Pay Taxes/Fees Legal fees and court filing fees will be the main fees required. 2.6.10 Mandatory Notice Periods The notice period specified in the lease agreement must be complied with by the lessor. However, if the
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