Last Updated: August 22 2026
In Ontario, can I claim disgorgement if I was wronged but suffered no measurable loss even though the wrongdoer profited from the wrongdoing?
If you’re in Ontario and the wrongdoer profited from a wrongdoing without you proving a matching loss, you may still pursue disgorgement, which is a restitution-style remedy aimed at stripping ill-gotten gains rather than fully compensating for loss; under the “profiting from wrong” theory of unjust enrichment, courts may allow disgorgement where there is an underlying legal wrong and ordinary damages are inadequate, with “corresponding deprivation” assessed by whether the gain was made possible by the wrongful act, such as in categories like breach of fiduciary duty, breach of trust, and in exceptional cases certain crimes, breaches of contract, or torts (see Pharmascience v. Novartis Pharmaceuticals, 2020 ONSC 6534). For practical guidance on what facts to document and what remedy to plead, Paralegal services from Vagans Legal can help you evaluate your claim and next steps by calling (416) 473-8472.
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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.
Note: Please contact Vagans Legal by phone at: (416) 473-8472 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 amount of online searches pertaining to “lawyers near me” or “best lawyer in” frequently indicate a pressing need for competent legal representation rather than a specific title of professional. In Ontario, licensed paralegals are governed by the same Law Society that supervises lawyers and are permitted to advocate for clients in specific litigation scenarios. Advocacy, legal analysis, and procedural expertise are fundamental to this position. Vagans Legal provides legal representation within its licensed parameters, focusing on strategic positioning, evidence preparation, and persuasive advocacy aimed at attaining efficient and favourable resolutions for clients.
