Thailand Legal and Business News: February 2009

Supreme Court Opinions

THE GROUND FOR DIVORCETS
Mrs. Prapai Tanonkaew vs. Mr. Kitipoom Phetyoi

The Defendant sent a letter of complaint to the Plaintiff’s superior and instructor that the Plaintiff committed adultery with other woman. This matter is regarded as the personal behavior of the Plaintiff. The Defendant who is the wife of the Plaintiff has the right to express her love and jealousness upon her husband. Her request to the Plaintiff’s superior and instructor to admonish the Plaintiff to think of his family is not regarded as humiliating the Plaintiff’s reputation. No severe disciplinary punishment was executed.

SUBLET AGREEMENT TRANSFER THE LEASED PROPERTY
Ms. Suwanna Sae-heur vs. Mr. Komrat Maliwongse

The 30 years land leased contract indicated that leased for construction the buildings and there was no tea money for the lease. T, the former lessor and the three Defendants did not designate the construction period and the amount of the buildings that the three Defendants is going to build up on the leased land. From the contract, it is cleared that the three Defendants have right to construct the building in any quantity and at any time during the leased period. And in setting the new agreement on constructing period.

NON-MONETARY DAMAGES AND ACTING ON BEHALF OF A MINOR
Mr.Chaot-uthai Fuungsiriviboon vs. Mr. Boonruen Netniyom

The plaintiff claims for compensation in cause of action on tort. The defendant argued that the plaintiff’s lawful father made a contract of compromise regarding damages so there is no current right to claim the compensation of the plaintiff. The Court judged that the legal representative of the Plaintiff made the contract of compromise relating to the property of the minor without Court consent which is a void act. The right to claim has therefore not expired.

Thailand Legal News Updates:

NEWS :

Amendments to the Public-Private Joint Venture Act to Be Proposed

16 February 2009

The Finance Ministry will propose to the Council of Economic Ministers amendments to the Public-Private Venture Act this week. The proposed measures are intended to boost investment by the private sector in government investment projects at a time when private investment is sluggish.

To hasten the government’s authorization of smaller projects, the government was requested by the business sector to increase the 1 billion minimum value of public-private joint ventures to 2 billion. The government was also urged to take the lead in investment so as to engender public confidence.

According to media reports, the Thailand Finance Minister stated that the government desires to maintain effective cash management and will cut short government projects handled by a unit unable to disburse the allocated budget by July 2009.

Organic Farmers Oppose Herb Regulation

12 February 2009

A group of organic farmers and their supporters have expressed discontent with the listing of 13 herbs as hazardous substances under the 1992 Hazardous Substances Act by the Industry Ministry, which took effect on 3 February, and demand the Ministry revoke its decision. The Ministry’s regulation requires that growers, producers, importers and exporters of pesticides, herbicides, and plant disease control substances comprised of the 13 herbal plants abide by the quality control and safety regulations set forth. Violators face a jail term of six months and/or a fine of 50,000 baht.

The 13 herbs are widely used by farmers as pesticides as they are reportedly cheaper and safer than the chemical pesticides produced by chemical companies.

Some farmers oppose the new regulation as they are of the opinion that the regulation supports chemical companies and restricts their use of herbicides and pesticides.

US – Thailand Free-Trade Agreement Talks to Resume

5 February 2009

The United States will resume free-trade agreement talks with Thailand after the new administration of the respective countries settle in according to media sources. The free-trade rounds of talks began in June 2004 and involved 7 rounds before the US suspended discussions following the military coup of September 2006. The issues covered concerned investment and trade in goods and services.

Deputy Commerce Minister Alongkorn Ponlaboot stated that the talks are intended to boost Thailand’s export growth to the US as the US is one of Thailand's largest export markets. He is to travel to Washington to officially resume the talks and will attempt to persuade the US to upgrade Thailand’s trade status from Priority Watch List to Watch List.

Thailand Foreign Business Act to Remain Unchanged

4 February 2009

At a dinner hosted by the American Chamber of Commerce attended by more than 600 foreign business people yesterday, Prime Minister Abhisit Vejjajiva announced that his administration would not amend the Foreign Business Act as he wished to promote foreign investment in Thailand and a free-market economy. Furthermore, the PM wished to restore international investor confidence in Thailand. Prior to this, foreign investors in Thailand were concerned that the government would propose a stricter version of the Act. The Foreign Business Act is considered by many to be a major obstacle to foreign investment and company registration in Thailand.

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