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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: August 22 2026
Question: Can I sue in Ontario to recover improper profits or disgorgement even if my financial loss was small?
Answer: In Ontario, you may be able to claim disgorgement if the other party profited from wrongdoing under the “profiting from wrong” theory of unjust enrichment, even where you had little or no corresponding deprivation, but the court generally looks for an underlying legal wrong and may treat disgorgement as a fairness-based, restitutionary remedy rather than compensatory damages. In Pharmascience v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534, the court explained that disgorgement is typically reserved for breaches of fiduciary duty or trust, though exceptional cases can support it for certain crimes, contract breaches, or torts, depending on how the wrongdoing enabled the defendant’s gain. If you are considering an Ontario claim for disgorgement tied to improper profits, a paralegal at PKM Legal Services can help you assess the facts, the “underlying legal wrong,” and what evidence to gather. Call (519) 410-5250 to book a quick review today.
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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.
Note: Please contact PKM Legal Services by phone at: (519) 410-5250 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
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 significant quantity of online searches featuring “lawyers near me” or “best lawyer in” frequently indicates a pressing necessity for competent legal assistance rather than a distinct occupational label. In Ontario, accredited paralegals fall under the regulation of the same Law Society that governs lawyers and possess the authority to advocate for clients in specific litigation issues. Core elements of this position include advocacy, legal evaluation, and procedural expertise. PKM Legal Services provides legal advocacy under its sanctioned mandate/scope, focusing on strategic alignment, evidence preparation, and persuasive representation aimed at attaining efficient and advantageous outcomes for clients.
