Thai owned family business unable to collect 300k baht. options?

[sendintheclowns]

wife and I really want to see these guys (Thai husband & wife)  get their money paid. the background: They have a contract to do 1.5 million baht false ceiling work for a new (Thai owned) resort. Contract is a standard form one, imprinted with the DBD (Dept. of Business Development) - so I would imagine it is fool-proof. The contract says that the Resort should pay 100k every month. They have been short paying for 5 months. The aggregate shortfall is now 300,000 baht. we have suggested that they go to local Building Permit offices, identify the name on the building permit, and lodge a complaint with the local police. (Useless, but it's a start). Then register a complaint/action with a court (which one?). Also get the husband to sign a Power of Attorney,  as he is afraid to go to Court (and would make a useless witness, according to his wife).

other info (which may be meaningless): another local contractor is getting screwed similarly. He's out of luck as he has a verbal contract.  The resort has influential backers - as it appears to break local building code, on the beach area. Anyone can add advice, please?

[ezzra]

This is a clear case of cheating by deception where money wasn't paid for

goods and services supplied, and this is a police matter as long as the 

contract clearly stipulates and spells out the resort's obligations to pay

on time, but first, registerd letters of demand should be sent to the debetors giving

them time to either response and pay, if no response or payments, you have proofs

of failure to adhere to the contract's agreement and a ground to lodge a police

compliant for cheating and payment denial.....

[scorecard]

Not your major concern but don't totally rule out that the second guy is screwed because he only has verbal contract. 

 

The commercial law of Thailand (like 99% of countries) does recognize verbal contract if there is enough circumstantial evidence.

 

But of course not easy and if the resort owners have powerful people behind them then that factor is possible another road bump to gaining justice. 

[Lucky mike]

Verbal contract is worth the paper it is written on !

[MartinKal]

Prepare a dossier:

1. Identities of the parties

2. Chronology (diary) of events, to also include summary of the contract and attempts at mediation

3. History of payments due and made

4. The contract itself (copy).

 

Court fees 2% of valu claimed. Be prepared for three court hearings. Hopefully you will get value of work, interest, legal fees and costs.

If they dont pay, to bailiffs for execution (cost included in the court fees).

Further difficulty can be met with by freezing bank accounts, judge can force a transfer, seizure of assets, bankruptcy.

 

Procedure will take 8 months to a year.

 

Since 2014, difficult to get private assistance from police or military ( but I would be very interested in feedback from readers).

 

What I do not know is whether it is possible to go to court without an attorney.

 

Feedback of readers' experience welcome.  Take heart, there is a functioning legal system in this country and it is possible to defeat debtors and crooked lawyers, though perseverance is required.

[Russell17au]

Just remember that what ever is done that there is copies of all documentation showing dates that it was sent or preferably send by email with a proof of read receipt. The proof of read receipt well be returned as soon as the person opens the email, then they cannot say they did not receive it or that they did not read it. This is handy if it comes to court action

[tryasimight]

1 hour ago, Russell17au said:

Just remember that what ever is done that there is copies of all documentation showing dates that it was sent or preferably send by email with a proof of read receipt. The proof of read receipt well be returned as soon as the person opens the email, then they cannot say they did not receive it or that they did not read it. This is handy if it comes to court action

Unless they are like me and always decline the invitation to send a read receipt.

[Russell17au]

but you still have the record that the email was sent thus showing that you have tried to do everything to fix the problem.

[sendintheclowns]

great!! what a bunch of good guys/good advice. Our friends have hand delivered several detailed billings/ monies due statements. No response. I suggested registered /EMS mail. Advice to set a 10 day deadline, for payment, in the registered letter is smart. There is a tricky part - the contract calls for a completion date, which was extended (changes initialled by the wife of the resort owner - and she is named on the contract).

They are still working, even though not paid for work done. I think that it os smart not to leave themselves open to a countersuit that they abandoned the job. Will keep you informed, as this is an interesting case.

[ThaiWai]

1 hour ago, tryasimight said:

Unless they are like me and always decline the invitation to send a read receipt.

555 Me too!  It can only be bad news.  If they need my attention so badly they should have called first and told me a suspicious envelope was on the way and the nature of the contents.

[ALFREDO]

On 22/8/2560 at 0:12 PM, sendintheclowns said:

another local contractor is getting screwed similarly. He's out of luck as he has a verbal contract.

 

On 22/8/2560 at 2:28 PM, scorecard said:

Not your major concern but don't totally rule out that the second guy is screwed because he only has verbal contract. 

 

The commercial law of Thailand (like 99% of countries) does recognize verbal contract if there is enough circumstantial evidence.

 

 

On 22/8/2560 at 5:24 PM, Lucky mike said:

Verbal contract is worth the paper it is written on !

 

A verbal contract should be OK, if you have witnesses who proof what was said in that verbal contract. 

[speedtripler]

2 hours ago, ALFREDO said:

 

 

 

A verbal contract should be OK, if you have witnesses who proof what was said in that verbal contract. 

Hard  to get a Thai to accuse another thai  of anything... It goes against their whole ethos of not making the other party lose face etc

[sendintheclowns]

update: our friends got a postdated check. so they held off sending a demand letter. The check was accepted. So that is 100k down. Immediately after the check cleared they filed a regsitered demand for the balance of 200k. Only time will tell. (Bowie).

 

 

[sendintheclowns]

update: friends got a 2nd postdated check, leaving 50k on the table.they'll settle for that, plus the other guys business reputation is rumoured to be hurt. they learned a lot from this. but need a standard government approved contract. Is there one put out by the Law Society.?

 

Edited November 3, 2017 by sendintheclowns