Mesne profits, or as it is commonly known “intermediate profits,” refer to profits that are made by a third-party on land (real estate) that was taken without the owner’s permission.
When a person gains unauthorized use of land they are said to be “in wrongful possession” of that property. This means that any profits that are generated while they are in wrongful possession must be returned to the original landowner. These are called mesne profits.
Mesne profits give the original landowner legal grounds for seeking compensation in the form of money damages. By doing this, the original landowner remains whole and not out of pocket for the profits lost due to the wrongful possession of the land.
How Can Businesses Benefit From Mesne Profits?
Businesses can benefit from mesne profits in a number of ways. For one, they can use it as an avenue for obtaining restitution for sales or earnings lost due to a third-party’s wrongful possession of the land that they leased for their business. Additionally, businesses may also seek damages for costs or expenses incurred due to the wrongful possession of a leased property.
Another way that businesses can use mesne profits as an avenue for legal compensation is by known as “right of entry,” where a court will award the original owner the right to enter the wrongful possessor’s land and collect the appropriate amount of money.
Conclusion
Mesne profits are a valuable concept for both landowners and made businesses alike. Claiming mesne profits can provide legal restitution for losses or damages caused by a third-party’s wrongful possession of land, as well as the right of entry in some cases to collect those profits.