Claiming Disgorgement Remedy

Question: Is there a way to get disgorgement or other compensation in Ontario when a wrongdoer profits from fraud or other wrongdoing but the victim’s losses are small?

Answer: In Ontario, a Paralegal or Lawyer & Benchmark Legal Offices (Paralegals and Lawyers’ Office to Serve You) can help you pursue a disgorgement remedy where the wrongdoer “profits from wrong,” meaning a court may order the defendant to give up ill-gotten gains even when the victim’s direct loss is limited, because disgorgement is restitutionary and aims to stop people from benefiting from wrongful conduct rather than only paying for measured damages;   for example, Ontario courts describe this in Pharmascience Inc. v. Novartis Pharmaceuticals, 2020 ONSC 6534, and you can ask for a case assessment on how “underlying legal wrong” and “corresponding deprivation” may apply to your facts, including breaches tied to fraud, breach of contract, or a tort in appropriate circumstances, by calling (289) 389-8840 for assistance across Ontario.

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.

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:

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.  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.