Facts
Bank Saint Petersburg PLC (the complainant) had issued an irrevocable bank guarantee in favour of ATA Insaat Sanayi ve Ticaret Ltd. (the opposing party). When the opposing party demanded payment of the guarantee amount, the complainant did not comply. Thereupon, the opposing party initiated arbitration proceedings and demanded payment of USD 20,522,812.50 plus interest from the complainant. The arbitral tribunal ordered the complainant to pay USD 13,681,875.-- plus interest.Considerations
The Federal Court dismissed the complainant's constitutional complaint against the arbitral award. It concluded that the arbitral tribunal had not violated the principle of "ne eat judex ultra petita partium" by awarding the opposing party a claim for damages, even though the opposing party had demanded performance of the contract. The arbitral tribunal was entitled to assess the opposing party's claim also from the legal perspective of breach of contract. Furthermore, the complainant could reasonably have expected the arbitral tribunal to examine a claim for damages, as the opposing party had alleged a breach of the…