Last Updated: August 22 2026
In Ontario, can I seek disgorgement when someone profits from a wrongdoing even if my direct losses are small?
Yes, in appropriate Ontario cases a victim may pursue disgorgement as a restitutionary remedy to strip a wrongdoer of ill-gotten gains where the claim fits a “profiting from wrong” unjust enrichment theory, typically requiring an underlying legal wrong and that ordinary damages are inadequate, as discussed in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534; disbursed amounts are aimed at preventing the wrongdoer from benefitting rather than simply making you whole. For practical next steps, Vescio Legal Services can review your facts, help assess whether “profiting from wrong” disgorgement is viable, and outline a clear claim strategy with a paralegal-led approach, call (416) 400-8255 in Ontario.
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Can a Lawsuit Claim Improper Profits Gained By 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 Vescio Legal Services by phone at: (416) 400-8255 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
Imagine a situation where a person commits a criminal fraud or a civil fraud upon another person. In some circumstances, the victim may experience little harm or was able to mitigate all or most of the harm that resulted from the fraud and thus little loss, if any occurs; however, the wrongdoer may have significantly benefited or profited from the fraud. 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” usually signify a demand for prompt and effective legal support rather than an exact job title. In Ontario, licensed paralegals are monitored by the same Law Society that regulates lawyers and have the authority to represent clients in certain litigation matters. Skills in advocacy, legal analysis, and procedural knowledge are pivotal to that function. Vescio Legal Services offers legal representation within its licensed parameters, focusing on strategic planning, evidence preparation, and compelling advocacy aimed at achieving swift and beneficial outcomes for clients.
