Litigation funding—Thailand—Q&A guide
Litigation funding—Thailand—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Litigation funding—Thailand—Q&A guide
  • 1. Is third-party litigation funding permitted? Is it commonly used?
  • 2. Are there limits on the fees and interest funders can charge?
  • 3. Are there any specific legislative or regulatory provisions applicable to third-party litigation funding?
  • 4. Do specific professional or ethical rules apply to lawyers advising clients in relation to third-party litigation funding?
  • 5. Do any public bodies have any particular interest in or oversight over third-party litigation funding?
  • 6. May third-party funders insist on their choice of counsel?
  • 7. May funders attend or participate in hearings and settlement proceedings?
  • 8. Do funders have veto rights in respect of settlements?
  • 9. In what circumstances may a funder terminate funding?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to litigation funding in Thailand published as part of the Lexology Getting the Deal Through series by Law Business Research (published: October 2020).

Authors: Rajah & Tann Asia—Surasak Vajasit; Melisa Uremovic; Chotiwit Ngamsuwan; Supawadee Vajasit

1. Is third-party litigation funding permitted? Is it commonly used?

Although there is no statutory prohibition on third-party litigation funding, it could be inferred from past Supreme Court judgments that litigation funding by a third party who has no legitimate interest in the legal action in return for a share in the proceeds if the claim succeeds is likely to be considered by the Thai courts as being contrary to public policy and good morals; therefore, there is a risk that it could be void under Thai law.

2. Are there limits on the fees and interest funders can charge?

Not applicable.

3. Are there any specific legislative or regulatory provisions applicable to third-party litigation funding?

There are no specific rules that prevent lawyers in Thailand from advising their clients on using third-party litigation funding.   

The Lawyers Council Regulations on Lawyer Conduct B.E. 2529 (A.D. 1986) prohibits lawyers from taking any action that constitutes an instigation to litigate a groundless case or using deceptions to induce a client to entrust him or her with representation in court, such as deceiving the client into believing that the client will

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