Dispute System Design: The United Nations Compensation Commission

Abstract

The Security Council of the United Nations established the United nations Compensation Commission ("UNCC") with its Resolution 687 on April 3, 1991. It was the first compensation system established under the authority of Chapter VII of the U.N. Charter and was designed to process and pay claims arising from the Iraqi invasion of Kuwait in 1990. Resolution 687 confirmed that Iraq was liable "for any direct loss, damage, including environmental damages and the depletion of natural resources, or injury to foreign Governments, nationals and corporations..." Resolution 687 also created a fund to pay those claims and a commission to administer that fund. The details of the compensation fund and the commission were established by Security Council Resolution 693 on May 20, 1991.