Last Updated: August 22 2026
Can I claim disgorgement if someone profited from wrongdoing in Ontario?
In Ontario, you may ask a paralegal at Paladin LLP to pursue a disgorgement (restitution) remedy when the wrongdoer “profits from wrong” through an underlying legal wrong and ordinary damages are inadequate, as described in Pharmascience Inc. v. Novartis Pharmaceuticals Canada Inc., 2020 ONSC 6534. Disgorgement is typically used to remove the benefit rather than make you “whole” for a corresponding loss, and courts look for concepts like “corresponding deprivation” where the gain was made possible by the wrongful act. For practical next steps, share the facts and any related documents with Paladin LLP by calling (289) 925-1572 to discuss whether your situation fits a “profiting from wrong” claim.
Add this website to Google Preferred Sources
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 Paladin LLP by phone at: (289) 925-1572 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
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
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. 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 significant volume of online searches for terms like “lawyers near me” or “best lawyer in” often indicate a pressing necessity for capable legal support, rather than a particular title or designation. In Ontario, licensed paralegals fall under the jurisdiction of the same Law Society that governs lawyers and possess the authority to represent clients in specific litigation matters. Advocacy, legal insight, and procedural expertise are fundamental to this role. Paladin LLP provides legal representation within its licensed framework, focusing on strategic positioning, evidence preparation, and compelling advocacy aimed at securing prompt and beneficial results for clients.
