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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Can a Lawsuit Claim Improper Profits Gained By 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: 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
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. Courts, seeking to discourage wrongful conduct, may order that the ill gotten gains be disgorged, meaning taken away, from the wrongdoer and granted to the victim. Essentially, disgorgement remedy is used to ensure that a wrongdoer fails to benefit or profit from acts of wrongdoing especially in circumstances where the victim was unharmed, or suffered only little harm, by the misconduct of the wrongdoer.
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 considerable assortment of inquiries featuring “lawyers near me” or “best lawyer in” typically indicate an urgent requirement for competent legal assistance rather than a specific designation. In Ontario, licensed paralegals are governed by the same Law Society that supervises lawyers and possess the authority to represent clients in specific litigation contexts. Advocacy, legal reasoning, and procedural expertise are fundamental to this position. Civil Litigations Paralegal Services provides legal representation within its licensed parameters, emphasising strategic positioning, evidentiary groundwork, and compelling advocacy aimed at securing efficient and favourable outcomes for clients.
