Last Updated: August 22 2026
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?
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
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:
[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 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.
