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.
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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 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
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
Imagine a situation where a person commits a criminal fraud or a civil fraud upon another person. In some circumstances, the victim may experience little harm or was able to mitigate all or most of the harm that resulted from the fraud and thus little loss, if any occurs; however, the wrongdoer may have significantly benefited or profited from the fraud. 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 quantity of inquiries related to “lawyers in my vicinity” or “top lawyer in” commonly indicate a desire for prompt and proficient legal assistance rather than 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 matters. Skills in advocacy, legal reasoning, and procedural expertise are fundamental to this function. DK Legal Practice provides legal representation within its licensed parameters, focusing on strategic positioning, evidential groundwork, and persuasive advocacy aimed at securing efficient and advantageous outcomes for clients.
