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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: August 22 2026
Question: If I was a victim but didn’t suffer a clear loss, can I still claim disgorgement when the wrongdoer profited from the wrongdoing in Ontario?
Answer: In Ontario, a paralegal at White Owl Legal can help you evaluate whether you can seek disgorgement (a restitutionary remedy) even if you had little or no measurable loss, because courts may order stripping ill gotten gains when the defendant “profited from wrong,” meaning there was an underlying legal wrong and ordinary damages are inadequate; for example, the approach is discussed in Pharmascience v. Novartis Pharmaceuticals, 2020 ONSC 6534 call (289) 839-3075 for a quick triage of your claim and what evidence may support a disgorgement theory under Ontario civil litigation.
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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 White Owl Legal by phone at: (289) 839-3075 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
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. 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 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 substantial number of online searches entailing “lawyers close to me” or “top lawyer in” typically indicate a demand for prompt and proficient legal assistance rather than a particular designation. In Ontario, certified paralegals fall under the jurisdiction of the same Law Society that governs lawyers and are empowered to represent clients in specified litigation matters. Skills in advocacy, legal assessment, and procedural expertise are fundamental to this position. White Owl Legal provides legal representation within its licensed framework, focusing on strategic positioning, evidentiary preparation, and compelling advocacy with the goal of achieving effective and advantageous outcomes for clients.
