Carte Blanche (Singapore) PTE., Ltd. v. Carte Blanche International, Ltd.

Carte Blanche Singapore PTE., Ltd. (CBS) (plaintiff) and Carte Blanche International. Ltd. (CBI) (defendant) entered into a contract containing an arbitration provision, which stated arbitration would be conducted by the International Chamber of Commerce (ICC). A dispute between CBS and CBI arose. CBS initiated arbitration proceedings against CBI, seeking almost $7 million dollars in damages. The terms of reference for arbitration stated that arbitration should address damages owed to CBS and included no damage limitations. In the rules of procedure, the only section of the terms of reference in which damage restrictions were mentioned, arbitrators were also explicitly given broad discretion to suspend any rules of procedure. Three arbitrators—Hans Smit, Theodore Sorenson, and chairman William Piel—were selected and confirmed by the ICC. An interim award finding CBI liable to CBS on all claims was issued. CBS requested leave to amend its pleadings and terms of reference to add a claim for over $3 million in consequential damages. CBI opposed the request, and CBS never filed any amendments. CBS sought over $16 million during the damages stage and was ultimately awarded almost $10 million by Piel and Smit. Sorensen dissented, asserting the damages award was unreasonably high. Pursuant to the ICC rules, the ICC court reviewed the award prior to its finalization, which included certification that the ICC rules were satisfied. CBS petitioned in federal district court to confirm the award. CBI objected, arguing the award violated the requirement under the ICC rules that new arbitration claims not identified in the terms of reference be pursued in separate arbitration proceedings unless the parties agreed otherwise. CBS argued that the court should not review procedural rulings of arbitrators.