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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: August 22 2026
Question: In Ontario, can I seek disgorgement when someone profits from a wrongdoing even if my direct losses are small?
Answer: 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.
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
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. 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 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 number of online searches featuring “lawyers in my area” or “top lawyer in” often indicate an urgent need for effective legal assistance rather than a particular title. In Ontario, the same Law Society that governs lawyers also regulates licensed paralegals, permitting them to represent clients in specific litigation matters. Advocacy, legal analysis, and procedural expertise are key components of that function. Vescio Legal Services provides legal representation within its licensed framework, focusing on strategic approach, evidence preparation, and compelling advocacy designed to secure efficient and advantageous outcomes for clients.