Category "E" ClaimsCategory "E" claims are claims of corporations, other private legal entities and public sector enterprises. They include claims for: construction or other contract losses; losses from the non-payment for goods or services; losses relating to the destruction or seizure of business assets; loss of profits; and oil sector losses. The Commission received approximately 5,800 category "E" claims submitted by seventy Governments seeking a total of approximately US$80 billion in compensation. The category "E" claims range from asserted losses of a few thousand US dollars to those for several billion US dollars. The Commission has established four subcategories of category "E" claims.
 The number of category "E" claims filed by claimant Governments. The Commission has organized the category "E" claims into
four separate sub-categories and established for each a corresponding secretariat
team and panel of Commissioners.
"E1" claims are oil sector claims. The Commission has
received 92 "E1" claims from corporations engaged in petroleum and related
activities in the Persian Gulf area seeking a total of approximately US$44
billion in compensation. The claims range from those with asserted losses
of less than US$100,000 to those for more than US$14 billion. Many of the
"E1" claims present difficult verification and valuation issues, particularly
in areas such as lost profits. Where possible, the Commissioners have standardized
the methodologies for verifying commonly-encountered and easily quantifiable
types of loss. In most "E1" cases, experts in accounting, finance, engineering
or the petroleum industry are engaged to assist the "E1" Panel of Commissioners
in establishing the value of the claims. One of the larger "E1" claims
was submitted by the Kuwait Oil Company. Known as the Well Blowout Control
claim, it concerned the cost of extinguishing the oil-well fires left behind
as Iraqi troops retreated from Kuwait. In December 1996, the Council approved
the award recommended by the Panel of US$610,048,547.
"E2" claims are claims of non-Kuwaiti corporations that
do not fall into any of the other sub-categories of "E" claims. The Commission
has received approximately 2,500 "E2" claims seeking a total of approximately
US$12 billion in compensation. These claims are for contract losses, financial
losses, increased business costs, loss of goods, loss of or damage to property
and decline in business. The principal industries represented in these
claims are agriculture, banking, finance, import/export, manufacturing,
military supply industries, professional services, telecommunications,
tourism and transport. "E3" claims are claims of non-Kuwaiti corporations related
to construction and engineering, excluding those involved in the oil sector.
The Commission has received approximately 400 "E3" claims seeking a total
of approximately US$10 billion in compensation. "E3" claims range from
those asserting losses of US$40,000 to those for more than US$850 million.
More than half of the "E3" claims are for losses related to projects located
in Iraq. The remainder involve projects located in Kuwait and other Persian
Gulf countries. "E3" claims include claims for contractual, business and
asset losses, as well as claims for expenses relating to the evacuation
of personnel from Iraq or Kuwait.
"E4" claims are claims of Kuwaiti corporations, excluding
those relating to the oil sector. The Commission has received approximately
2,750 "E4" claims seeking a total of approximately US$11 billion in compensation.
"E4" claims range from those asserting losses for US$6,400 to those for
US$975 million. "E4" claims include claims for loss and damage to property,
fixed assets, plant machinery, stock and vehicles, as well as claims for
loss of profits, increased cost of performance of a contract or increased
cost of obtaining performance of a contract.
With the exception of category "E4" claims, the review of all claims in category
"E" will be completed in December 2003.
|
Back to the main page...