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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Is There a Type of Legal Compensation Available From a Wrongdoer Who Profits From a 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: For immediate help, please contact Civil Litigations Paralegal Services by phone at: (416) 229-1479 to retain services or to discuss any specific questions that you may have.
Understanding Disgorgement Remedy Principles Involving Restitution For Wrongdoings Resulting In Ill Gotten Gains
There are some circumstances in which a wrongdoer receives a benefit or profit from the wrongdoing and yet the victim is without a corresponding harm or loss. Generally, under legal principles akin to no harm, no foul concepts, a legitimate lawsuit permits compensation for the loss or harm suffered by the victim; however, in some circumstances it is proper to claim disgorgement of benefits or profits received by 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
Imagine a situation where a person commits a criminal fraud or a civil fraud upon another person. In some circumstances, the victim may experience little harm or was able to mitigate all or most of the harm that resulted from the fraud and thus little loss, if any occurs; however, the wrongdoer may have significantly benefited or profited from the fraud. 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 restitutionary remedy rather than a compensatory remedy, meaning that the law applies disgorgement as a matter of fairness rather than as a matter of making a victim whole for loss or harm suffered by the victim.
NOTE: A significant array of queries like “lawyers near me” or “best lawyer in” frequently indicates a desire for prompt and effective legal support as opposed to a particular designation. In Ontario, paralegals who hold a license are governed by the same Law Society that regulates lawyers and are empowered to represent clients in specific litigation areas. The core elements of this role include advocacy, legal insight, and procedural expertise. Civil Litigations Paralegal Services provides legal representation within its licensed parameters, focusing on strategic alignment, evidence preparation, and compelling advocacy aimed at securing swift and positive outcomes for clients.
