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Breach of Contract in Thailand

Breach of Contract can have serious consequences for your business. Although lawyers will often attempt to settle contract disputes through informal methods such as a demand letter, it is sometimes necessary to take legal action involving Thailand courts.

This article will explore some common types of contractual breach and how it is remedied under Thai law.

Contracts in the Construction Industry

Whether a contractor is working on a project for an agency or for a private client, they are usually required to provide a contract that specifies the terms and conditions of their work. These contracts must be in writing. If the contractor does not follow these contract requirements, they may be in breach of their agreement.

In Thailand, contracts are regulated by the Civil and Commercial Code (CCC). A contract can be oral or implied but must have an offer and acceptance to be legal. Vague or ambiguous contract terms can lead to disputes.

In an effort to improve transparency and combat unfair payment practices, Thai lawmakers have introduced a bill that would prohibit conditional payment clauses in construction contracts. The bill also aims to reduce transaction costs by allowing for statutory adjudication proceedings on payment disputes. This could be a beneficial change for international businesses working on projects in Thailand. However, it is important to understand how these changes could impact a breach of contract dispute.

Non-Disclosure Agreements (NDAs)

NDAs are a common contract tool in Thailand, used to protect sensitive information such as trade secrets, business strategies, intellectual property and customer lists. NDAs are usually mutually-binding and can be enforceable in court, but it’s important to consider the nuances of Thai law when drafting an NDA.

The terms of an NDA must be fair, reasonable and not against public policy or good morals. It’s also advisable to include both Thai and English versions of the NDA and clearly define the choice of jurisdiction and Thailand dispute resolution mechanisms, which can improve enforceability.

Breaches of NDAs can have serious legal and reputational consequences, such as termination of contracts and employment, loss of business opportunities and damage to your brand’s image. If a breach of an NDA occurs, it is crucial to act quickly and seek injunctive relief from the court. This may involve sending a cease-and-desist letter, or filing a lawsuit and requesting a temporary restraining order or preliminary injunction.

Damages

The most common way that a breach of contract leads to a legal dispute is for one party to seek damages. This can include compensation for the cost of performing the contract as well as any other loss or injury caused by the breach.

The Thai court system provides methods to retrieve the amount ruled in a court case including seizing assets or liquidating them. However, this can be a lengthy and costly process. Most attorneys will try to settle matters like this out of court.

It is important to understand the legal framework, types of breaches, available remedies and resolution methods before entering into a business relationship in Thailand. A good attorney will have experience in local and international disputes regarding contracts and can provide advice on the best way to proceed with a dispute without resorting to costly and drawn out litigation. A lawyer will also have the skills to negotiate a resolution to a contract dispute in a manner that is best for your business.

Rescinding a Contract

Contracts are the cornerstone of business transactions and legal relationships in Thailand, just as they are worldwide. However, contractual disputes do arise and it is important for both businesses and individuals to understand the legal framework, types of breach, available remedies, and resolution methods.

The most common remedy for breach of contract is damages, which are monetary awards designed to compensate the non-breaching party for losses incurred as a result of the breach. However, a party may also seek specific performance, which is a court order requiring the breaching party to perform its obligations as stipulated in the contract.

Alternatively, parties may opt to resolve their disputes through arbitration. This is a form of alternative dispute resolution in which a neutral arbitrator or panel hears the case and renders a binding decision. However, if all other methods fail, litigation may be necessary. The court’s decision will be final and binding on the parties.

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Personal Injury Claims in Thailand

Many foreign tourists have experienced accidents or injuries in Thailand. These incidents often happen at hotels and other tourist establishments.

Under Thai law, a person who wilfully and negligently unlawfully injures the life, body, health, liberty, property or any other right of another may be held liable to compensate for the damage.

Statute of Limitations

Any claim for compensation in Thailand must be made within a year of the date of your accident or injury. This is strictly adhered to by Thai courts.

Section 420 of the Thai Civil and Commercial Code stipulates that “a person who wilfully or negligently unlawfully injures the life, body, health, liberty, property or other rights of another shall be bound to make compensation.” The type and amount of this compensation is determined by the court and varies according to the circumstances and the severity of the wrongful act.

A lawyer can assist you with determining what your damages are and file a lawsuit for you if necessary. Often times, however, personal injury cases in Thailand are resolved through negotiation with the tortfeasor’s insurance company. In addition, most personal injury cases require that the injured party appear in person for all hearings. If you cannot come to Thailand in person, you can sign a power of attorney and allow a lawyer in Thailand to represent you.

Damages

As a victim of an accident or injury in Thailand, you’ll be entitled to compensation. This compensation will help to put you back in the position that you were in before the incident occurred, including expenses, loss of earnings and benefits.

However, it’s important to note that unlike many western jurisdictions, Thai courts will only award damages for quantifiable losses. This includes lost earnings that have already been incurred as well as those that are expected to be incurred in the future. Damages for intangible losses are often less substantial, but can still be awarded – albeit at a much lower level than what you’ll see in the West.

A claim for compensation in Thailand must be made within one year of the date on which the injury or wrongful act was committed (this is known as the ‘prescription period’). If it’s also a criminal case, a longer prescription will apply. This is why it’s so vital that you seek legal advice as soon as possible.

Representation

Most law firms in Thailand will have someone on staff who can handle personal injury claims. They will be able to help you determine whether you have a valid claim and assist with filing it. The most common type of personal injury claim in Thailand is for motor vehicle accidents. Other types of injuries can include falls on property, workplace incidents and public place accidents.

Under Thai law, if a person willfully or negligently causes injury to another person’s body, life, health, liberty, property or rights, they are bound to compensate the injured party. Compensation will be awarded for the injury itself and other tangible losses such as expenses for medical treatment, lost income and loss of future earnings. The courts will also take into account other intangible losses such as pain and suffering though these awards may be more restrained than in some countries. It is important for the claimant to physically appear at all hearings in court.

Appeal

If you have suffered an injury in Thailand, whether it occurred at your accommodation or on the streets of the country, it is important to contact a law firm immediately. Many firms have someone on staff dedicated to personal injury, or you can look for a more specialized law firm to handle your case.

Generally, a claim for compensation is a civil case rather than criminal in nature. It is essential that any claims be filed as soon as possible or they will be lost due to the statute of limitations.

The courts in Thailand will seek to award you compensation that will return you to the position you were before the accident. This may include paying your medical bills and compensating you for any time lost at work – both past and future. In some cases, the court will award you for the pain and suffering you have endured as well. This is known as “damages”. In common law jurisdictions, damages for various intangible factors such as disfigurement and emotional distress can reach astronomical levels.

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Medical Malpractice in Thailand

Medical Malpractice is an act or omission by a medical practitioner that causes injury or death to a patient. Malpractice lawsuits have become an increasing source of litigation for physicians in Thailand.

Compensation in medical negligence claims is based on quantifiable losses. With the right Thailand lawyer, you can maximize your chances of being awarded more than what is normally offered.

Compensation

A patient who believes they are a victim of medical malpractice can file a civil lawsuit. Whether you have been injured by birth injury malpractice, negligence in nursing or dentistry malpractice, you may be entitled to compensation. The law is clear that health care providers must provide the standard of care to their patients at all times and signing a consent form does not waive any right to sue.

Thailand’s court system tends to limit general damages in medical malpractice claims to quantifiable losses, such as loss of earnings currently incurred and those expected to be lost in the future. Compensation for pain and suffering is a little harder to get.

The ViZe Counselor team of Thailand medical negligence lawyers can help you file a medical malpractice claim and ensure that the appropriate amount of compensation is awarded. We will work hard to get you the best possible outcome for your case. We also offer a free consultation service to discuss your claim and help you decide what course of action to take.

Statute of Limitations

While medical malpractice is rare, when it does occur, the victim or their family can file a lawsuit. The result of a malpractice claim can be compensation, cancelation of hospital bills, new treatment opportunities, and punishment of the wrong party.

Malpractice is the act or omission of a healthcare practitioner that falls below the standard of practice in the medical community and causes injury or death to a patient. This can include unskilled, inadequate, or neglectful treatment as well as wrongful diagnosis and failure to warn patients of known health risks.

Society wants medical professionals to be motivated to engage in best practices, occasionally taking calculated and informed risks with their patients’ welfare as the paramount concern. At the same time, societies do not want high malpractice insurance rates and defensive medicine to stifle medical innovation and access to quality care. Fortunately, there are strategies for developing successful malpractice policies. These typically involve establishing a national database for malpractice claims, and a no-fault provision in the country’s health insurance.

Best Practice

Many countries struggle to balance the need to provide quality care and the transactions costs associated with malpractice claims. In order to limit these costs, policy makers seek strategies that will encourage good practice and reduce the number of medical malpractice lawsuits.

One such strategy is to establish a national database for malpractice claims, which would allow better analysis of trends in malpractice claim incidence and compensation. This would help inform current malpractice policy debates and facilitate the development of successful initiatives.

Medical negligence claims are often complicated and require expert testimony. A lawyer with expertise in both medical and legal issues is essential to ensure the success of your case. SIAM CENTER LAW GROUP is a Thailand law firm that can provide you with the ideal lawyer to represent your case in a civil law medical malpractice trial. A professional and perfect Thailand lawyer can increase the chances of a positive outcome significantly. This is especially true if your medical negligence claim involves a foreign physician.

Complaints

With Thailand’s growing reputation as a medical tourism hub, more patients have been coming to the country for surgeries and treatments. While the majority of these patients leave satisfied with their procedures and results, some do not and seek compensation.

The 2008 Consumer Case Procedures Act makes it possible for patients to file claims directly against doctors. This allows claimants to file their complaints verbally or in writing, and it also means that they are exempt from paying court fees for their case.

However, it has been reported that malpractice claims are not random and there is a correlation between certain socio-demographic variables and the probability of receiving malpractice complaints. According to a study involving 1684 doctors, male doctors from surgical specialties who perform a greater number of on-call shifts, those who work in regional or county hospitals and those whose life partner is a doctor are more likely to receive malpractice complaints.

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Courts Handle Civil and Criminal Cases in Thailand

Representatives of NGOs and legal entities reported that police and security officers sometimes torture suspects to obtain confessions. Human rights groups also reported that government officials filed frivolous lese majeste and sedition charges against protest leaders and journalists.

Litigation in Thailand is typically a lengthy and time-consuming process. To address this issue, the Law on the Timeframe for Judicial Proceedings was enacted in October 2022 and came into effect on 23 January 2023.

Courts

In Thailand, judges and not juries try cases. Courts have jurisdiction to adjudicate all civil and criminal matters based on law. Judges are independent in adjudicating cases and may use their discretion to determine guilt or innocence, as well as to decide on the punishment for a defendant.

The Courts of First Instance consist of general courts,(2) juvenile and family courts and specialized courts.(3) The Supreme (Dika) Court has the final authority over all appeals against judgments of the Courts of First Instance and specialized courts.

The Supreme Court’s judgments become precedents for the lower courts to follow. Its role is to ensure that all laws are in accordance with the Constitution and public interest. It also acts as the protector of the rights and liberties of the people and the maintainer of a democratic regime of government with the King as Head of State. In interpreting the Constitution, the Court has been creative in mobilising constitutional interpretation techniques such as originalism and legal history.

Jurisdiction

There are three levels of courts in Thailand: the Courts of First Instance, Appeals Court and Supreme Court. Parties who are unhappy with a decision at the lower level can appeal to the higher court.

Court proceedings in Thailand are conducted in the Thai language and pleadings must be submitted in that language. Testimony and documentary evidence must also be translated into Thai before they can be presented in court.

The Appeals Court handles cases decided by the lower courts, such as the District and Provincial Courts. In addition, the Appeals Court has jurisdiction over all cases decided by the First Instance and Regional Appeal Courts located in Bangkok and the Specialized Appeal Court for a Case.

The Constitutional Court has garnered an ambivalent international reputation for its de facto dissolution of opposition political parties and cancelling of general elections in the name of protecting democracy. More recently, it has been tasked with validating organic acts (rules of near-constitutional value placed above legislation in the hierarchy of norms) by the junta.

Filing a Case

The legal process in Thailand begins with a private individual or company submitting a complaint to the police or directly to the court. If the complaint is criminal, the court will conduct a preliminary “investigative” hearing to determine whether or not there is sufficient evidence to proceed with the case for a full trial.

The central and nine regional courts of appeal review the judgments of the First Instance and Specialized Courts, respectively, to reaffirm, dismiss, or reverse those decisions. The Supreme Court, located in Bangkok, hears appeals of cases that are not within the jurisdiction of the other two courts, or those involving a matter of national importance.

As a general rule, criminal defamation cases are filed by companies who allege that a public figure has slandered or libelled them. Defamation is punishable by imprisonment and large fines, as it violates lese majeste laws. Moreover, it can lead to civil damages claims which involve civil litigation procedures.

Trial

The Judge presiding over the trial makes all determinations of guilt or innocence, and also determines punishment. Unlike most countries in the world where criminal trials have a jury, Thai trials are conducted without one.

The court in a district where an offence is committed, alleged, or believed to have been committed, or where an accused resides or is arrested, has jurisdiction over the case. In addition, the Central Bankruptcy Court, the Central Intellectual Property and International Trade Court, the Central Taxation Court, and the Central Labor Court are centralized courts with national jurisdiction.

In 2019 the criminal court dismissed a four-year-old lese majeste case against Patnaree Chankit, mother of political activist Sirawith “Ja New” Seritiwat, after finding her one-word reply to a question in a Facebook chat critical of the monarchy was not an offense. Nonetheless, many rights activists continue to face charges related to their demonstrations. Security forces have been reported visiting or surveilling the homes of protest leaders and harassing them in other ways.