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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: July 06 2026
Question: Is disgorgement available in Ontario when a wrongdoer profits from wrongdoing even if the victim did not suffer a measurable loss?
Answer: Disgorgement may be available in Ontario through an unjust enrichment “profiting from wrong” theory when a plaintiff can show an underlying legal wrong and that ordinary damages are inadequate, with courts often reserving disgorgement for breaches of fiduciary duty or trust but allowing it in exceptional cases involving other wrongs like certain torts, crimes, or breach of contract, as described in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., et al, 2020 ONSC 6534; in other words, disgorgement is a restitutionary remedy meant to prevent the wrongdoer from keeping ill-gotten gains rather than strictly compensating for a loss; if you are dealing with a situation where someone profited from misconduct without clear damages, Woodcock Legal Services can help you assess whether a disgorgement claim is viable and how to frame the evidence and remedies, call (613) 334-6721 for professional legal services in Ontario.
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.
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. 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 considerable amount of online searches, such as “lawyers near me” or “best lawyer in,” typically indicate a desire for prompt and competent legal assistance rather than a precise job title. In Ontario, licensed paralegals are regulated by the same Law Society that governs lawyers and are permitted to represent clients in specified litigation issues. Skills in advocacy, legal analysis, and procedure are vital to this role. Woodcock Legal Services provides legal representation within its licensed framework, focusing on strategic positioning, evidentiary preparation, and effective advocacy aimed at securing timely and beneficial outcomes for clients.
