Last Updated: August 23 2026
Can I sue to get disgorgement of improper profits when the other party profited from wrongdoing with little or no loss to me?
Civil Litigations Paralegal Services can help Ontario clients pursue a disgorgement claim under the “profiting from wrong” unjust enrichment theory when an underlying legal wrong occurred and ordinary damages are inadequate, even if your harm was limited, by asking the court to order the wrongdoer to give up the benefits or profits made possible by the misconduct (often reserved for breaches of fiduciary duty or trust, but potentially available in exceptional cases involving other wrongs) like in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., et al, 2020 ONSC 6534. If you think your situation fits the disgorgement framework, call (416) 229-1479 to discuss the facts and what evidence you would need for a strong civil litigation paralegal strategy in Ontario.
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What Can a Victim of Wrongdoing Claim In a Lawsuit If the Victim Was Without the Suffering of a Loss But the Wrongdoer Received a Benefit or Profit From the Wrongdoing?
When a Wrongdoer Benefits or Profits From a Wrongdoing, the Victim of the Wrongdoing May Claim Disgorgement of the Benefits or Profits From the Wrongdoer.
Note: Please contact Civil Litigations Paralegal Services by phone at: (416) 229-1479 to discuss any specific questions that you may have.
Understanding Disgorgement Remedy Principles Involving Restitution For Wrongdoings Resulting In Ill Gotten Gains
In some circumstances a wrongdoer may receive a benefit or profit arising from the wrongdoing while little, if any, loss or harm arises to the victim of the wrongdoing. Whereas the law generally forbid a person from suing unless a loss or harm has occurred per no harm, no foul principles, a valid lawsuit may involve claims for the illegitimate benefits or profits arising from the misconduct of the wrongdoer.
The Law
Disgorgement remedy, as a stripping of ill gotten gains from a wrongdoer, was well explained within the Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., et al, 2020 ONSC 6534, case wherein it was stated:
[19] Under the “profiting from wrong” theory of unjust enrichment, disgorgement may be available if the defendant has committed “an underlying legal wrong against a plaintiff, and the ordinary damages remedy for the underlying wrong is inadequate”. As the Court of Appeal noted, disgorgement in these cases is typically reserved for when there has been a breach of fiduciary duty or a breach of trust. However, in exceptional cases, disgorgement as a restitutionary remedy can also be granted where the “underlying legal wrong” is a crime or a breach of contract or a tort.[6] In cases premised on “profiting from wrong”, the concept of “corresponding deprivation” takes on a slightly different meaning. A plaintiff may be able to prove a corresponding loss by showing that the defendant’s gain was “made possible” by the defendant’s wrongful act towards the plaintiff rather than proving a direct or indirect transfer of wealth.[7]
Explained Principles
There may be circumstances where a person commits a criminal fraud or a civil fraud, among other wrongs, without causing harm or loss to the wronged person and yet benefits or profits arise in favour of the wrongdoer. The law, applied by the courts, seeking to discourage and deter wrongful conduct, may order that the benefits or profits be disgorged from the wrongdoer and provided to the victim. In this way the remedy of disgorgement ensures that the wrongdoer fails to benefit or profit from the wrongdoing and is, presumably, discouraged and deterred from engaging in wrongful conduct.
Summary Comment
Disgorgement is a form of restitution rather than compensation whereas disgorgement is applied in law as a matter of fairness rather than as a means for making whole the losses or harms of a victim.
NOTE: A significant number of inquiries featuring “lawyers near me” or “best lawyer in” typically indicate an urgent requirement for effective legal representation rather than a certain professional designation. In Ontario, licensed paralegals are governed by the same Law Society that supervises lawyers, granting them the authority to represent clients in specific litigation matters. Central to that role are advocacy, legal analysis, and procedural expertise. Civil Litigations Paralegal Services offers legal representation within its licensed framework, focusing on strategic positioning, evidence preparation, and compelling advocacy designed to attain efficient and favourable outcomes for clients.
