Last Updated: August 22 2026
If I was a victim of wrongdoing but had little or no financial loss, can I still sue to recover the wrongdoer’s profits or benefits?
Benchmark Legal Offices can help Ontario victims assess whether a disgorgement (profiting from wrong) claim is available even when you suffered minimal loss because damages may be inadequate and courts may strip ill-gotten gains to prevent the wrongdoer from profiting from the misconduct. In Pharmascience v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534, the court explained that disgorgement can be sought under unjust enrichment when there is an underlying legal wrong and ordinary damages are inadequate, often reserved for breaches of fiduciary duty or trust but potentially available for other wrongs in exceptional cases, with “corresponding deprivation” focusing on how the gain was made possible by the wrongful act. To discuss your facts and the best remedy to request, call (289) 389-8840 to speak with a paralegals and lawyers’ office serving clients across Ontario.
Add this website to Google Preferred Sources
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 Benchmark Legal Offices by phone at: (289) 389-8840 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
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 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 multitude of queries featuring “lawyers near me” or “best lawyer in” frequently indicate a desire for prompt and proficient legal assistance instead of a particular job title. In Ontario, licensed paralegals are governed by the same Law Society that regulates lawyers and are permitted to represent clients in specific litigation matters. Advocacy, legal assessment, and procedural expertise are fundamental to that function. Benchmark Legal Offices provides legal representation within its licensed scope, focusing on strategic positioning, evidence preparation, and compelling advocacy aimed at attaining efficient and favorable results for clients.
