Last Updated: August 22 2026
Can I sue to get improper profits disgorged even if I was not harmed?
In Ontario, a lawsuit may request disgorgement to strip ill-gotten gains when a wrongdoer “profits from wrongdoing” and ordinary damages are inadequate, often focusing on fairness rather than fully compensating your losses, as explained in Pharmascience v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534. Disgorgement is commonly tied to breaches involving trust or fiduciary duties, but in exceptional cases it can be linked to other underlying legal wrongs like certain frauds or breach of contract, where you can show “corresponding deprivation” by proving the gain was made possible by the wrongful act. For paralegal support in Ontario, DK Legal Practice can help you assess whether your claim fits a disgorgement remedy and what evidence to gather, call (416) 906-6663.
Add this website to Google Preferred Sources
Can a Lawsuit Claim Improper Profits Gained By 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 DK Legal Practice by phone at: (416) 906-6663 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 considerable amount of inquiries featuring “lawyers near me” or “best lawyer in” frequently indicate an urgency for competent legal assistance rather than merely seeking a specific title. In Ontario, “licensed paralegals” fall under the regulation of the same Law Society that governs lawyers, granting them the authority to represent clients in certain litigation matters. Core functions of this role include advocacy, legal analysis, and procedural expertise. DK Legal Practice provides legal representation within its licensed parameters, focusing on strategic positioning, evidentiary preparation, and effective advocacy to attain timely and beneficial outcomes for clients.
