April 18, 2024
In-court arbitration is an alternative dispute resolution (ADR) tool provided in the Civil Procedure Code (CPC) for cases that have already been submitted to the court. Historically, in-court arbitration has not been a popular method of resolving disputes. Instead, out-of-court arbitration, as prescribed by the Thai Arbitration Act B.E. 2545 (2002), is far more utilized in practice.
The popularity of out-of-court arbitration is demonstrated by the fact that presentations on arbitration in Thailand almost exclusively focus on out-of-court arbitration; in-court arbitration is rarely even a topic of discussion. This situation is partly because in-court arbitration has not been encouraged by the courts in the past. Further, it is also not common for parties to agree on arbitration clauses after a dispute arises and also after it has been submitted to the court. Instead, arbitration clauses are generally discussed and crafted during the negotiation of the contract, which will most likely provide that any dispute arising out of the contract is to be resolved by out-of-court arbitration. Nonetheless, the Thai Courts of Justice have recently started to support this in-court ADR tool as a viable option and to encourage parties to agree in-court arbitration clauses before proceeding with a case through trial.
This article is not meant to assess whether in-court arbitration is preferable to either out-of-court arbitration or to having the case heard by professional judges of the Courts of Justice. Instead, the purpose of this article is to discuss certain key provisions of the CPC that parties should carefully consider before agreeing to an in-court arbitration clause. On this point, the CPC specifically states that out-of-court arbitration is prescribed by arbitration law, the Arbitration Act, which is an entirely separate piece of legislation drafted specifically to apply to out-of-court arbitration. In contrast, in-court arbitration is completely regulated by the CPC,