THAILAND Law and Practice Contributed by: Chusert Supasitthumrong, John Frangos, Alongkorn Tongmee and Eric Meyer, Tilleke & Gibbins
8.2 Settlement of Lawsuits and Confidentiality In Thailand, the settlement of a lawsuit can remain confidential under certain conditions. Although there is no law stipulating this, in practice, certain circum- stances may be applied as follows. Confidentiality Clause Parties can include a confidentiality clause in their set- tlement agreement, stipulating that the terms of the settlement and any related communications remain confidential. This is a common practice to protect sen- sitive information. Court Records Generally, court records in Thailand are not publicly available and can be accessed by only the parties to the case. If confidentiality is crucial, the parties may also request that the court seal certain documents or keep them confidential. It is at the court’s discretion whether to approve or reject such request. 8.3 Enforcement of Settlement Agreements If a party does not fulfil its obligations under a settle- ment agreement, the aggrieved party can file a sepa- rate lawsuit for breach of the settlement agreement with the competent court. The plaintiff can use the court judgment to enforce against the adversary or judgment debtor. If the settlement involves monetary compensation and the debtor does not pay, the credi- tor can initiate enforcement proceedings to seize the debtor’s assets or obtain other remedies. If the parties enter into an in-court settlement agree- ment, the court will issue a consent judgment. In case of breach, the aggrieved party can request that the court enforce the consent judgment without the need to file a separate lawsuit for enforcement. 8.4 Setting Aside Settlement Agreements Thailand has no laws specifically addressing the set- ting aside of settlement agreements. However, if a settlement agreement is formed under certain condi- tions relating to fraud or other undue process, or if it is contrary to public policy, an aggrieved party has a right to file a claim to the court to set aside or revoke the agreement. The court will then review the case and determine whether the agreement should be set aside.
Some examples of potential legal bases to set aside a settlement agreement include the following. Fraud or Misrepresentation A creditor can apply to a court to rescind any juristic act or agreement committed by a debtor knowing that it will prejudice a creditor. If the creditor can prove that it was induced to enter into the settlement due to fraudulent statements or misrepresentations made by the debtor, the agree- ment may be declared void by a court order or judg- ment. Should this be the case, the law provides that rescis- sion of a prejudicial act shall not affect the rights of a third party acquired in good faith before the initiation of an action for rescission. Illegality If the terms of a settlement violate the law or public policy, it may be deemed unenforceable and set aside by the court judgment. Procedural Issues If proper legal procedures were not followed during the formation of the settlement (eg, lack of proper documentation or not being made in the presence of legal representatives when required), an aggrieved party can file a suit to the court for the revocation of such agreement. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant In Thailand, a successful litigant may be awarded com- pensatory damages, which are intended to restore the injured party to the position it was in prior to the harm. At the full trial stage, remedies may include monetary compensation, specific performance or injunctions. These awards are contingent on the nature of the case and the evidence presented. Courts may also award legal costs to the prevailing party, depending on the circumstances and the discretion of the court. The awarded legal costs are normally not substantial.
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