Last Updated: August 22 2026
Can I claim disgorgement or other compensation in Ontario when a wrongdoer profits from wrongdoing even if my direct damages are small?
Yes, in Ontario you may be able to pursue a disgorgement (restitutionary) remedy under a “profiting from wrong” theory when a wrongdoer’s gain was made possible by an underlying legal wrong and ordinary damages are inadequate, as discussed in Pharmascience, 2020 ONSC 6534. Paralegals at Cross Legal Services help Ontarians assess whether your claim involves the right “underlying legal wrong” (such as breach of trust or fiduciary duty, and in exceptional cases other wrongful acts) and what evidence to gather about the ill-gotten gains to seek an order stripping those profits. For practical next steps, call (289) 443-0675 to discuss your situation and avoid delays.
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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 Cross Legal Services by phone at: (289) 443-0675 to discuss any specific questions that you may have.
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. 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 restitutionary remedy rather than a compensatory remedy, meaning that the law applies disgorgement as a matter of fairness rather than as a matter of making a victim whole for loss or harm suffered by the victim.
NOTE: A significant volume of inquiries featuring “lawyers near me” or “best lawyer in” typically indicates a desire for prompt and effective legal assistance rather than a particular job title. In Ontario, the same Law Society that governs lawyers also regulates licensed paralegals, empowering them to represent clients in specified litigation cases. Essential to this role are advocacy, legal analysis, and procedural expertise. Cross Legal Services provides legal representation within its licensed parameters, focusing on strategic positioning, preparation of evidence, and compelling advocacy to secure efficient and beneficial outcomes for clients.
