Last Updated: August 22 2026
Can I still sue in Ontario if the wrongdoing victim had no measurable financial loss, but the wrongdoer profited from the wrongdoing?
In Ontario, Olson Craig Legal can help you assess whether you can seek disgorgement (a restitutionary remedy that strips ill-gotten gains) even when you have little or no corresponding loss, because under the “profiting from wrong” theory unjust enrichment may allow disgorgement if there is an underlying legal wrong and ordinary damages are inadequate; courts often reserve it for fiduciary duty or breach of trust but can grant it in exceptional cases involving crimes, breach of contract, or tort where the defendant’s gain was made possible by the wrongful act against you. For guidance on evidence, pleading strategy, and whether disgorgement is available in your situation, contact Olson Craig Legal at (226) 886-2001 to speak with their lawyer & paralegals serving clients across Ontario.
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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 Olson Craig Legal by phone at: (226) 886-2001 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
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. 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 number of online searches featuring “lawyers near me” or “best lawyer in” frequently indicate a need for prompt, proficient legal assistance rather than a particular designation. In Ontario, “licensed paralegals” are governed by the same Law Society that supervises lawyers and have the authority to represent clients in specific litigation cases. Advocacy, legal analysis, and procedural expertise are crucial aspects of this role. Olson Craig Legal provides legal representation within its licensed parameters, focusing on strategic positioning, evidence preparation, and compelling advocacy designed to secure efficient and advantageous outcomes for clients.
