State responsibility lost profits have been awarded for the period up to the time of adjudication. In the Factory at Chorzów case,572 this took the form of re-invested income, representing profits from the time of taking to the time of adjudication. In the Norwegian Shipowners’ Claims case,573 lost profits were similarly not awarded for any period beyond the date of adjudication. Once the capital value of income-producing property has been restored through the mechanism of compensation, funds paid by way of compensation can once again be invested to re-establish an income stream. Although the rationale for the award of lost profits in these cases is less clearly articulated, it may be attributed to a recognition of the claimant’s continuing beneficial interest in the property up to the moment when potential restitution is converted to a compensation payment.574 (31) The third category of claims for loss of profits arises in the context of concessions and other contractually protected interests. Again, in such cases, lost future income has sometimes been awarded.575 In the case of contracts, it is the future income stream which is compensated, up to the time when the legal recognition of entitlement ends. In some contracts this is immediate, e.g. where the contract is determinable at the instance of the State,576 or where some other basis for contractual termination exists. Or it may arise from some future date dictated by the terms of the contract itself. (32) In other cases, lost profits have been excluded on the basis that they were not sufficiently established as a legally protected interest. In the Oscar Chinn case577 a monopoly was not accorded the status of an acquired right. In the Asian Agricultural Products case,578 a claim for lost profits by a newly established business was rejected for lack of evidence of established earnings. Claims for lost profits are also subject to the usual range of limitations on the recovery of damages, such as causation, remoteness, evidentiary requirements and accounting principles, 572 Factory at Chorzów, Merits (see footnote 34 above). Norwegian Shipowners’ Claims (see footnote 87 above). 574 For the approach of UNCC in dealing with loss of profits claims associated with the destruction of businesses following the Iraqi invasion of Kuwait, see S/AC.26/1999/4 (footnote 557 above), paras. 184– 187. 575 In some cases, lost profits were not awarded beyond the date of adjudication, though for reasons unrelated to the nature of the incomeproducing property. See, e.g., Robert H. May (United States v. Guatemala), 1900 For. Rel. 648; and Whiteman, Damages in International Law, vol. III (footnote 568 above), pp. 1704 and 1860, where the concession had expired. In other cases, circumstances giving rise to force majeure had the effect of suspending contractual obligations: see, e.g., Gould Marketing, Inc. v. Ministry of Defence of the Islamic Republic of Iran, Iran-U.S. C.T.R., vol. 6, p. 272 (1984); and Sylvania Technical Systems, Inc. v. The Government of the Islamic Republic of Iran, ibid., vol. 8, p. 298 (1985). In the Delagoa Bay Railway case (footnote 561 above), and in Shufeldt (see footnote 87 above), lost profits were awarded in respect of a concession which had been terminated. In Sapphire International Petroleums Ltd. (see footnote 562 above), p. 136; Libyan American Oil Company (LIAMCO) (see footnote 508 above), p. 140; and Amco Asia Corporation and Others v. The Republic of Indonesia, First Arbitration; Annulment; Resubmitted case (see footnote 565 above), awards of lost profits were also sustained on the basis of contractual relationships. 576 As in Sylvania Technical Systems, Inc. (see the footnote above). 577 See footnote 385 above. 578 See footnote 522 above. 573 105 which seek to discount speculative elements from projected figures. (33) If loss of profits are to be awarded, it is inappropriate to award interest under article 38 on the profit-earning capital over the same period of time, simply because the capital sum cannot be simultaneously earning interest and generating profits. The essential aim is to avoid double recovery while ensuring full reparation. (34) It is well established that incidental expenses are compensable if they were reasonably incurred to repair damage and otherwise mitigate loss arising from the breach.579 Such expenses may be associated, for example, with the displacement of staff or the need to store or sell undelivered products at a loss. Article 37. Satisfaction 1. The State responsible for an internationally wrongful act is under an obligation to give satisfaction for the injury caused by that act insofar as it cannot be made good by restitution or compensation. 2. Satisfaction may consist in an acknowledgement of the breach, an expression of regret, a formal apology or another appropriate modality. 3. Satisfaction shall not be out of proportion to the injury and may not take a form humiliating to the responsible State. Commentary (1) Satisfaction is the third form of reparation which the responsible State may have to provide in discharge of its obligation to make full reparation for the injury caused by an internationally wrongful act. It is not a standard form of reparation, in the sense that in many cases the injury caused by an internationally wrongful act of a State may be fully repaired by restitution and/or compensation. The rather exceptional character of the remedy of satisfaction, and its relationship to the principle of full reparation, are emphasized by the phrase “insofar as [the injury] cannot be made good by restitution or compensation”. It is only in those cases where those two forms have not provided full reparation that satisfaction may be required. (2) Article 37 is divided into three paragraphs, each dealing with a separate aspect of satisfaction. Paragraph 1 addresses the legal character of satisfaction and the types of injury for which it may be granted. Paragraph 2 describes, in a non-exhaustive fashion, some modalities of satisfaction. Paragraph 3 places limitations on the obliga579 Compensation for incidental expenses has been awarded by UNCC (report and recommendations on the first instalment of “E2” claims (S/AC.26/1998/7) where compensation was awarded for evacuation and relief costs (paras. 133, 153 and 249), repatriation (para. 228), termination costs (para. 214), renovation costs (para. 225) and expenses in mitigation (para. 183)), and by the Iran-United States Claims Tribunal (see General Electric Company v. The Government of the Islamic Republic of Iran, Iran-U.S. C.T.R., vol. 26, p. 148, at pp. 165–169, paras. 56–60 and 67–69 (1991), awarding compensation for items resold at a loss and for storage costs).