Last Updated: August 22 2026
In Ontario, can I seek disgorgement or other compensation when a wrongdoer profits from wrongdoing without causing major losses?
Yes. In appropriate Ontario civil cases, a victim may pursue disgorgement (a restitutionary remedy) to strip ill-gotten gains when someone “profits from wrong,” even where the victim’s loss is limited, by proving an underlying legal wrong and that ordinary damages are inadequate, as discussed in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534. If you are dealing with fraud, breach of trust, or other wrongdoing that generated profits, the right paralegal-led claim can focus on showing corresponding deprivation and the link between the wrongful act and the defendant’s gain rather than only direct damages. For a case review in Ontario, Caruso Legal Services can help you map options for disgorgement and related remedies; call (289) 271-0488.
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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: Please contact Caruso Legal Services by phone at: (289) 271-0488 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
The availability of the remedy of disgorgement was well explained within the case of Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., et al, 2020 ONSC 6534, wherein it was said:
[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 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 great many online searches such as “lawyers close to me” or “top lawyer in” often highlight an urgency for prompt and competent legal assistance instead of a particular job title. In Ontario, paralegals who are licensed fall under the regulation of the same Law Society that governs lawyers, granting them the authority to represent clients in certain types of litigation matters. Key aspects of this role include advocacy, legal analysis, and procedural expertise. Caruso Legal Services provides legal representation within its licensed authority, focusing on strategic planning, evidentiary organization, and compelling advocacy, all aimed at securing efficient and favourable outcomes for clients.
