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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: July 01 2026
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.
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
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
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 number of inquiries featuring “lawyers nearby” or “top lawyer in” typically indicate a pressing need for competent legal counsel instead of a specific designation. In Ontario, licensed paralegals are governed by the same Law Society that regulates lawyers and are permitted to represent clients in certain legal proceedings. Skills in advocacy, legal reasoning, and procedural expertise are fundamental to this position. Benchmark Legal Offices provides legal representation within its licensed parameters, focusing on strategic positioning, evidence preparation, and assertive advocacy directed towards securing prompt and beneficial outcomes for clients.
