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
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 considerable amount of searches featuring “lawyers near me” or “best lawyer in” frequently indicate a pressing demand for capable legal assistance rather than a particular designation. In Ontario, licensed paralegals are under the regulation of the same Law Society that supervises lawyers and have the authority to represent clients in specified litigation cases. Skills in advocacy, legal analysis, and procedure are pivotal to that function. Legacy Legal Services provides legal representation within its licensed framework, focusing on strategic positioning, preparation of evidence, and compelling advocacy aimed at securing efficient and beneficial outcomes for clients.
