THAILAND Law and Practice Contributed by: Chusert Supasitthumrong, John Frangos, Alongkorn Tongmee and Eric Meyer, Tilleke & Gibbins
Bankruptcy Cases In bankruptcy proceedings, settlements or com- promises involving the distribution of assets or liabilities typically require court approval. Class-Action Lawsuits If a settlement is reached in a class-action law- suit, it usually needs court approval to ensure that the interests of all class members are ade- quately represented and protected. Certain Types of Claims In some specific situations, such as when a minor is involved or in cases where a party is deemed to lack the legal capacity to settle (ie, someone under guardianship), court approval may be required to protect the interests of those parties. When court approval is necessary, the parties typically submit their settlement agreement to the court, which then reviews it to ensure it com- plies with legal standards and protects the rights of all parties involved. 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 prac- tice, certain circumstances may be applied as follows. Confidentiality Clause Parties can include a confidentiality clause in their settlement agreement, stipulating that the terms of the settlement and any related commu- nications remain confidential. This is a common practice to protect sensitive information.
the case and the backlog and caseload of the court in which the case is filed. For commercial disputes, a reasonable estimated timeframe for proceedings from commencement of a claim through trial can be 12 to 18 months, plus another one to three months for obtaining a lower court judgment. The length of the trial itself will depend on the number of witnesses that will testify at trial as well as the court’s schedule of available dates for the hearings. Thai courts will use the number of witnesses as the basis for scheduling the number of days for witness hear- ings. The court will attempt to schedule these witness hearings on consecutive days, but this will depend on the court’s schedule. In Thailand, court approval for settling a lawsuit is generally not required for most civil cases. The parties can negotiate and enter into either an in- court or an out-of-court settlement agreement. If the parties choose an in-court settlement agree- ment, the agreement must be approved by the court. However, there are other specific circumstances where court approval is necessary. Family Law Cases In divorce proceedings or child custody cases, any settlement agreement regarding the division of property or child support must be approved by the court to ensure that it is fair and in the best interest of the children involved. 8. Settlement 8.1 Court Approval
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