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Claiming Disgorgement Remedy
Involves Taking Benefits or Profits Away From a Wrongdoer
Last Updated: August 22 2026
Question: Can I still sue in Ontario if the wrongdoing victim had no measurable financial loss, but the wrongdoer profited from the wrongdoing?
Answer: 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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What Can a Victim of Wrongdoing Claim In a Lawsuit If the Victim Was Without the Suffering of a Loss But the Wrongdoer Received a Benefit or Profit From the 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.
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 form of restitution rather than compensation whereas disgorgement is applied in law as a matter of fairness rather than as a means for making whole the losses or harms of a victim.
NOTE: A substantial amount of inquiries such as “lawyers near me” or “best lawyer in” typically indicate an urgency for proficient legal assistance rather than a particular title. In Ontario, licensed paralegals operate under the same Law Society that governs lawyers and are permitted to advocate for clients in specific litigation cases. Skills in advocacy, legal reasoning, and procedural expertise are core to this position. Olson Craig Legal provides legal representation within its licensed remit, focusing on strategic planning, evidence preparation, and compelling advocacy designed to secure effective and advantageous outcomes for clients.