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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: July 02 2026
Question: Can a victim of wrongdoing in Ontario sue for disgorgement even if they did not suffer a financial loss, but the wrongdoer still made a profit or benefit from the wrongdoing?
Answer: Cross Legal Services can help Ontario consumers understand when a court may order disgorgement or other restitutionary relief for “profiting from wrong” even where you cannot show a traditional compensable loss, because disgorgement focuses on removing the wrongdoer’s ill gotten gains instead of fully compensating harm; in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534, the court explained that disgorgement may be available where there is an underlying legal wrong and ordinary damages are inadequate, and it is often reserved for breaches of fiduciary duty or trust, but can apply in exceptional cases involving other legal wrongs; if you believe someone benefited from fraud, a breach of trust, or another misconduct with limited or no measurable loss, call (289) 443-0675 to discuss your situation with a paralegal at Cross Legal Services.
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.
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
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 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 considerable number of online searches for “lawyers near me” or “best lawyer in” typically highlight an urgent requirement for skilled legal assistance rather than a particular professional designation. In Ontario, licensed paralegals operate under the same Law Society that governs lawyers and have the authority to represent clients in specific litigation situations. Advocacy, legal evaluation, and procedural expertise are fundamental to this position. Cross Legal Services provides legal representation within its licensed remit, focusing on strategic alignment, evidence preparation, and compelling advocacy designed to secure effective and positive outcomes for clients.