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Dispute Mediation Act B.E. 2562 (2019)
Dispute Mediation Act B.E. 2562 (2019)
The information is reviewed and updated monthly against official sources.
In short
Mediation as a fast, confidential alternative to court: a settlement can be made enforceable, and starting it pauses the limitation period.
Scope and purpose: What the Act covers
The Act provides a unified legal framework for mediating disputes, both out of court (private or agency-run mediation before a lawsuit) and court-annexed mediation once a case has been filed. It is designed to reduce the burden on the courts and give parties a quicker, cheaper and confidential way to resolve disagreements. It applies to defined categories of civil disputes and to certain limited criminal offences, but it does not override special procedures already set in other statutes (for example, separate labour or consumer mediation rules).
Civil disputes: Civil disputes eligible for mediation
Mediation under the Act is available for civil disputes such as contract, property, debt and tort claims, where the parties are free to settle the matter themselves. There is a value ceiling on the claim amount (in the range of several million baht, currently five million baht), and this ceiling can be adjusted by subordinate regulation. Disputes that the parties cannot lawfully compromise, or where settlement would be contrary to law, public order or good morals, fall outside the scheme.
Criminal mediation: Limited criminal offences that may be mediated
The Act permits mediation only for a narrow set of minor or compoundable criminal offences, typically those where the law allows the case to be settled or withdrawn between the parties (for example certain petty offences and offences affecting private interests). Serious crimes cannot be mediated. A successful criminal mediation can lead to the case being settled or compounded in accordance with the Criminal Procedure Code, but it does not turn a public-interest crime into a purely private matter.
Settlement agreement: Written and signed settlement agreement
If the parties reach agreement, the mediator must put the settlement in writing, and all parties together with the mediator must sign it. Once signed, the settlement agreement is binding on the parties according to its terms. This document is the key result of the process: it records exactly what each side has agreed to do and becomes the basis for any later enforcement.
Enforcement: Enforcing the settlement through the courts
If a party does not comply with an out-of-court mediated settlement, the other party may apply to the court to enforce it, and this application must be made within three years from the date the agreement became enforceable. The court treats the agreement much like an arbitral award and will issue an enforcement order unless a defined defence applies, for example lack of capacity, fraud, coercion, an unlawful object, or that the agreement is contrary to public order or good morals. A court-annexed mediation settlement is instead entered as a court judgment or compromise and enforced as such.
Prescription: Effect of mediation on prescription (limitation) periods
Starting a mediation under the Act suspends the running of the prescription (limitation) period for the duration of the mediation, so a party does not lose the right to sue simply because time passed while negotiating. If the mediation ends without agreement and the limitation period has already expired or would expire shortly after, the law gives a cushion: the period is extended so that the claim can still be filed for a defined short window (sixty days) after the mediation concludes. This protects a foreigner who tries mediation in good faith from being time-barred from later going to court.
Confidentiality: Confidentiality and the mediator's role
Mediation under the Act is confidential: statements, admissions and documents prepared for the mediation generally cannot be used as evidence in later court proceedings if the mediation fails. The mediator must be neutral and registered or recognised under the rules, must not take sides, and may help the parties find a fair solution but cannot impose a decision on them. These safeguards encourage parties to speak openly without fear that their concessions will be used against them later.