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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: July 08 2026
Question: Is it possible to claim disgorgement (a payment of ill-gotten profits) from a wrongdoer in Ontario when the victim’s losses are small or the wrongdoer’s gain is large?
Answer: In Ontario, a paralegal at Caruso Legal Services can help you understand when you may sue for disgorgement under the “profiting from wrong” theory of unjust enrichment, where an underlying legal wrong exists and ordinary damages may be inadequate, even if your direct losses are limited; as explained in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534, disgorgement is typically reserved for breaches like fiduciary duty or breach of trust, but in exceptional cases may be ordered for other wrongs where a “corresponding deprivation” can be shown (for example, the defendant’s gain was made possible by the wrongful act against you) and the goal is fairness and deterrence rather than making you whole; if you think someone profited from fraud or another misconduct in Ontario, call (289) 271-0488 for a practical next-step discussion.
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.
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
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 considerable amount of inquiries regarding “lawyers near me” or “best lawyer in” typically indicates a desire for prompt and proficient legal assistance rather than a specific job title. In Ontario, licensed paralegals operate under the same Law Society that governs lawyers and have the authority to represent clients in specific litigation scenarios. Advocacy, legal reasoning, and procedural expertise are fundamental to this position. Caruso Legal Services provides legal representation within its licensed parameters, focusing on strategic positioning, evidence preparation, and compelling advocacy aimed at securing efficient and favourable outcomes for clients.
