Last Updated: August 22 2026
Is disgorgement available in Ontario when a wrongdoer profits from wrongdoing without the victim suffering a direct loss?
Yes, in Ontario you may be able to pursue a restitutionary disgorgement remedy where the wrongdoer “profits from wrong,” meaning there is an underlying legal wrong and ordinary damages are inadequate, with proof of “corresponding deprivation” tied to how the gain was made possible by the wrong, as described in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534. If you are asking whether disgorgement fits your facts, Legacy Legal Services can help Ontario legal professionals and consumers assess claims for losses or ill-gotten gains in a way that supports fairness and deterrence; call (226) 246-3825.
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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 Legacy Legal Services by phone at: (226) 246-3825 to discuss any specific questions that you may have.
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 large volume of inquiries around “lawyers near me” or “best lawyer in” typically indicates an urgent need for effective legal assistance rather than a search for a particular designation. In Ontario, “licensed paralegals” are governed by the same Law Society that regulates lawyers and are permitted to represent clients in specified litigation issues. Core to their role are advocacy, legal assessment, and procedural expertise. Legacy Legal Services provides legal representation within its licensed framework, focusing on strategic positioning, evidence preparation, and compelling advocacy aimed at securing efficient and favourable outcomes for clients.
